Item 15. EXHIBITS, FINANCIAL STATEMENT SCHEDULES

EXHIBITS, FINANCIAL STATEMENT SCHEDULES

(a) Documents filed as a part of this report:

(1)Consolidated Financial Statements. See Index to Consolidated Financial Statements and Schedules elsewhere herein.

(2)Consolidated Financial Statement Schedules. See Index to Consolidated Financial Statement and Schedules elsewhere herein.

(3)Exhibits. See Exhibit Index elsewhere herein.

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

INDEX TO CONSOLIDATED FINANCIAL STATEMENTS AND SCHEDULES

DESCRIPTION			PAGE
Report of Independent Registered Public Accounting Firm [1]			127
FINANCIAL STATEMENTS
Consolidated Statements of Operations — For the Years Ended December 31, 2021, 2020 and 2019			129
Consolidated Statements of Comprehensive Income — For the Years Ended December 31, 2021, 2020 and 2019			130
Consolidated Balance Sheets — As of December 31, 2021 and 2020			131
Consolidated Statements of Changes in Stockholders’ Equity — For the Years Ended December 31, 2021, 2020 and 2019			132
Consolidated Statements of Cash Flows — For the Years Ended December 31, 2021, 2020 and 2019			133
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Note 1 - Basis of Presentation and Significant Accounting Policies			134
Note 2 - Business Acquisitions			142
Note 3 - Earnings Per Common Share			144
Note 4 - Segment Information			144
Note 5 - Fair Value Measurements			147
Note 6 - Investments			156
Note 7 - Derivatives			164
Note 8 - Premiums Receivable and Agents' Balances			169
Note 9 - Reinsurance			170
Note 10 - Deferred Policy Acquisition Costs			173
Note 11 - Goodwill & Other Intangible Assets			173
Note 12 - Reserve for Unpaid Losses and Loss Adjustment Expenses			174
Note 13 - Reserve for Future Policy Benefits			199
Note 14 - Debt			200
Note 15 - Commitments and Contingencies			203
Note 16 - Equity			206
Note 17 - Income Taxes			208
Note 18 - Accumulated Other Comprehensive Income, Net of Tax			210
Note 19 - Employee Benefit Plans			211
Note 20 - Stock Compensation Plans			218
Note 21 - Leases			221
Note 22 - Business Dispositions			222
Note 23 - Restructuring and Other Costs			223
SCHEDULES
Schedule I — Summary of Investments — Other Than Investments in Affiliates			225
Schedule II — Condensed Financial Information of The Hartford Financial Services Group, Inc.			226
Schedule III — Supplementary Insurance Information			229
Schedule IV — Reinsurance			231
Schedule V — Valuation and Qualifying Accounts			232
Schedule VI — Supplemental Information Concerning Property and Casualty Insurance Operations			[2]

[1] Deloitte & Touche LLP (PCAOB ID No. 34) is our principal accountant and an independent registered public accounting firm.

[2] Schedule has been omitted as information required is disclosed in the Notes to Consolidated Financial Statements or other Schedules.

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Table of Contents			Index to Consolidated Financial Statements and Schedules

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Directors and Stockholders of

The Hartford Financial Services Group, Inc.

Hartford, Connecticut

Opinion on the Financial Statements

We have audited the accompanying consolidated balance sheets of The Hartford Financial Services Group, Inc. and its subsidiaries (the "Company") as of December 31, 2021 and 2020, the related consolidated statements of operations, comprehensive income, changes in stockholders' equity, and cash flows, for each of the three years in the period ended December 31, 2021, and the related notes and the schedules listed in the Index at Item 15 (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2021 and 2020, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2021, in conformity with accounting principles generally accepted in the United States of America.

We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company's internal control over financial reporting as of December 31, 2021, based on criteria established in Internal Control — Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission and our report dated February 18, 2022, expressed an unqualified opinion on the Company's internal control over financial reporting.

Basis for Opinion

These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

Critical Audit Matters

The critical audit matters communicated below are matters arising from the current period audit of the financial statements that were communicated or required to be communicated to the audit committee and that (1) relate to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate.

Unpaid Losses and Loss Adjustment Expenses - Refer to Notes 1 and 12 to the financial statements

Critical Audit Matter Description

For property and casualty and group life and disability insurance products, the Company establishes reserves for unpaid losses and loss adjustment expenses to provide for the estimated costs of paying claims under insurance policies written by the Company. These reserves include estimates for both claims that have been reported and claims that have been incurred but not reported and include estimates of all losses and loss adjustment expenses associated with processing and settling these claims. This estimation process is based significantly on the assumption that past developments are an appropriate predictor of future events and involves a variety of actuarial techniques that analyze experience, trends and other relevant factors.

Given the subjectivity of estimating the ultimate cost to settle the liabilities for reported and unreported claims due to uncertainties caused by various factors including frequency and severity of claims as well as changes in the legislative and regulatory environment, performing audit procedures to evaluate whether unpaid losses and loss adjustment expenses were appropriately recorded as of December 31, 2021, required a high degree of auditor judgment and an increased extent of effort, including the need to involve our actuarial specialists.

How the Critical Audit Matter Was Addressed in the Audit

Our audit procedures related to the unpaid losses and loss adjustment expenses included the following, among others:

• We tested the effectiveness of controls related to the unpaid losses and loss adjustment expenses, including controls over inputs, methods, and assumptions used in the Company's estimation processes.

• We tested the underlying data that served as the basis for the Company’s analysis, including historical claims.

• With the assistance of our actuarial specialists, we evaluated the methods and assumptions used by the Company to estimate the unpaid losses and loss adjustment expenses by:

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Table of Contents			Index to Consolidated Financial Statements and Schedules

• Comparing the Company’s prior year assumptions of expected development of ultimate loss to actual losses incurred during the current year to identify potential management bias in the determination of the unpaid losses and loss adjustment expenses.

• Assessing the reasonableness of the Company’s analysis, and for selected reserving lines, developing independent estimates of the unpaid losses and loss adjustment expenses and comparing such estimates to the Company’s estimates.

Investments in Fixed Maturities Classified as Available-for-Sale - Refer to Notes 5 and 6 to the financial statements

Critical Audit Matter Description

Investments in fixed maturities classified as available-for-sale are reported at fair value in the financial statements. The investments without readily determinable fair values were valued using significant unobservable inputs, such as credit spreads and interest rates beyond the observable curve, that involved considerable judgment by the Company.

Given the Company used models and unobservable inputs to estimate the fair value of investments in fixed maturities classified as available-for-sale, performing audit procedures to evaluate these inputs required a high degree of auditor judgment and an increased extent of effort, including the need to involve our fair value specialists.

How the Critical Audit Matter Was Addressed in the Audit

Our audit procedures related to the models and unobservable inputs used by the Company to estimate the fair value of investments in fixed maturities classified as available-for-sale included the following, among others:

• We tested the effectiveness of controls over the valuation of investments in fixed maturities classified as available-for-sale, including controls over inputs, methods, and assumptions used in the Company’s estimation processes.

• On a sample basis, we tested the accuracy and completeness of the investments owned as of December 31, 2021, and the relevant security attributes used in the determination of their fair values.

• With the assistance of our fair value specialists, for a sample of investments, we tested the mathematical accuracy of the fair value calculation and developed independent estimates of the fair value and compared our estimates to the Company’s estimates. In addition to developing independent estimates, we obtained an understanding of the models and inputs used by the Company and assessed those models and inputs for reasonableness. Such assessment included comparing inputs to external sources or developing independent inputs.

/s/ DELOITTE & TOUCHE LLP

Hartford, Connecticut

February 18, 2022

We have served as the Company’s auditor since 2002.

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Table of Contents			Index to Consolidated Financial Statements and Schedules

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

Consolidated Statements of Operations

			For the years ended December 31,
(in millions, except for per share data)			2021			2020			2019
Revenues
Earned premiums			$	17,999		$	17,288		$	16,923
Fee income			1,488			1,277			1,301
Net investment income			2,313			1,846			1,951
Net realized gains (losses)			509			(14)			395
Other revenues			81			126			170
Total revenues			22,390			20,523			20,740
Benefits, losses and expenses
Benefits, losses and loss adjustment expenses			12,729			11,805			11,472
Amortization of deferred policy acquisition costs ("DAC")			1,680			1,706			1,622
Insurance operating costs and other expenses			4,779			4,480			4,580
Loss on extinguishment of debt			—			—			90
Loss on reinsurance transaction			—			—			91
Interest expense			234			236			259
Amortization of other intangible assets			71			72			66
Restructuring and other costs			1			104			—
Total benefits, losses and expenses			19,494			18,403			18,180
Income before income taxes			2,896			2,120			2,560
Income tax expense			531			383			475
Net income			2,365			1,737			2,085
Preferred stock dividends			21			21			21
Net income available to common stockholders			$	2,344		$	1,716		$	2,064
Net income available to common stockholders per common share
Basic			$	6.71		$	4.79		$	5.72
Diluted			$	6.62		$	4.76		$	5.66

See Notes to Consolidated Financial Statements.

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Table of Contents			Index to Consolidated Financial Statements and Schedules

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

Consolidated Statements of Comprehensive Income

			For the years ended December 31,
(in millions)			2021			2020			2019
Net income			$	2,365		$	1,737		$	2,085
Other comprehensive income (loss) (“OCI”):
Change in net unrealized gain on fixed maturities			(1,218)			1,150			1,660
Change in unrealized losses on fixed maturities for which an allowance for credit losses ("ACL") has been recorded			—			1
Change in other-than-temporary impairment ("OTTI") losses recognized in other comprehensive income ("OCI")									1
Change in net gain on cash flow hedging instruments			(6)			3			14
Change in foreign currency translation adjustments			(2)			9			4
Change in pension and other postretirement plan adjustments			228			(45)			(48)
OCI, net of tax			(998)			1,118			1,631
Comprehensive income			$	1,367		$	2,855		$	3,716

See Notes to Consolidated Financial Statements

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Table of Contents			Index to Consolidated Financial Statements and Schedules

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

Consolidated Balance Sheets

			As of December 31,
(in millions, except for share and per share data)			2021			2020
Assets
Investments:
Fixed maturities, available-for-sale, at fair value (amortized cost of $40,788 and $41,561, and ACL of $1 and $23)			$	42,847		$	45,035
Equity securities, at fair value			2,094			1,438
Mortgage loans (net of ACL of $29 and $38)			5,383			4,493
Limited partnerships and other alternative investments			3,353			2,082
Other investments			375			201
Short-term investments			3,697			3,283
Total investments			57,749			56,532
Cash			205			151
Restricted Cash			132			88
Premiums receivable and agents' balances (net of ACL of $105 and $152)			4,445			4,268
Reinsurance recoverables (net of allowance for uncollectible reinsurance of $99 and $108)			6,523			6,011
Deferred policy acquisition costs			881			789
Deferred income taxes, net			270			46
Goodwill			1,911			1,911
Property and equipment, net			1,027			1,122
Other intangible assets, net			858			950
Other assets			2,577			2,066
Assets held for sale			—			177
Total assets			$	76,578		$	74,111
Liabilities
Unpaid losses and loss adjustment expenses			$	39,659		$	37,855
Reserve for future policy benefits			596			638
Other policyholder funds and benefits payable			687			701
Unearned premiums			7,194			6,629
Long-term debt			4,944			4,352
Other liabilities			5,655			5,222
Liabilities held for sale			—			158
Total liabilities			58,735			55,555
Commitments and Contingencies (Note 15)
Stockholders’ Equity
Preferred stock, $0.01 par value — 50,000,000 shares authorized, 13,800 shares issued at December 31, 2021 and December 31, 2020, aggregate liquidation preference of $345			334			334
Common stock, $0.01 par value — 1,500,000,000 shares authorized, 366,960,228 shares issued at December 31, 2021 and 384,923,222 shares issued at December 31, 2020			4			4
Additional paid-in capital			3,309			4,322
Retained earnings			15,764			13,918
Treasury stock, at cost — 32,034,244 and 26,434,682 shares			(1,740)			(1,192)
Accumulated other comprehensive income, net of tax			172			1,170
Total stockholders' equity			17,843			18,556
Total liabilities and stockholders’ equity			$	76,578		$	74,111

See Notes to Consolidated Financial Statements.

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Table of Contents			Index to Consolidated Financial Statements and Schedules

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

Consolidated Statements of Changes in Stockholders' Equity

			For the years ended December 31,
(in millions, except for share and per share data)			2021			2020			2019
Preferred Stock			$	334		$	334		$	334
Common Stock			4			4			4
Additional Paid-in Capital
Additional Paid-in Capital, beginning of period			4,322			4,312			4,378
Issuance of shares under incentive and stock compensation plans			(90)			(96)			(100)
Stock-based compensation plans expense			116			106			114
Issuance of shares for warrant exercise			—			—			(80)
Treasury stock retired			(1,039)			—			—
Additional Paid-in Capital, end of period			3,309			4,322			4,312
Retained Earnings
Retained Earnings, beginning of period			13,918			12,685			11,055
Cumulative effect of accounting changes, net of tax			—			(18)			—
Adjusted balance beginning of period			13,918			12,667			11,055
Net income			2,365			1,737			2,085
Dividends declared on preferred stock			(21)			(21)			(21)
Dividends declared on common stock			(498)			(465)			(434)
Retained Earnings, end of period			15,764			13,918			12,685
Treasury Stock, at cost
Treasury Stock, at cost, beginning of period			(1,192)			(1,117)			(1,091)
Treasury stock acquired			(1,702)			(150)			(200)
Treasury stock retired			1,039			—			—
Issuance of shares under incentive and stock compensation plans			146			112			135
Net shares acquired related to employee incentive and stock compensation plans			(31)			(37)			(41)
Issuance of shares for warrant exercise			—			—			80
Treasury Stock, at cost, end of period			(1,740)			(1,192)			(1,117)
Accumulated Other Comprehensive Income (Loss), net of tax
Accumulated Other Comprehensive Income (Loss), net of tax, beginning of period			1,170			52			(1,579)
Total other comprehensive income (loss)			(998)			1,118			1,631
Accumulated Other Comprehensive Income, net of tax, end of period			172			1,170			52
Total Stockholders’ Equity			$	17,843		$	18,556		$	16,270
Preferred Shares Outstanding			13,800			13,800			13,800
Common Shares Outstanding
Common Shares Outstanding, beginning of period (in thousands)			358,489			359,570			359,151
Treasury stock acquired			(25,878)			(2,661)			(3,412)
Issuance of shares under incentive and stock compensation plans			2,902			2,298			2,906
Return of shares under incentive and stock compensation plans to treasury stock			(587)			(718)			(796)
Issuance of shares for warrant exercise			—			—			1,721
Common Shares Outstanding, end of period			334,926			358,489			359,570
Cash dividends declared per common share			$	1.44		$	1.30		$	1.20
Cash dividends declared per preferred share			$	1,500.00		$	1,500.00		$	1,500.00

See Notes to Consolidated Financial Statements.

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Table of Contents			Index to Consolidated Financial Statements and Schedules

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

Consolidated Statements of Cash Flows

			For the years ended December 31,
(in millions)			2021			2020			2019
Operating Activities
Net income			$	2,365		$	1,737		$	2,085
Adjustments to reconcile net income to net cash provided by operating activities
Net realized gains			(530)			(34)			(395)
Amortization of deferred policy acquisition costs			1,680			1,706			1,622
Additions to deferred policy acquisition costs			(1,751)			(1,666)			(1,635)
Depreciation and amortization			680			562			451
Loss on extinguishment of debt			—			—			90
Loss on sale of business			21			48			—
Other operating activities, net			(133)			85			76
Change in assets and liabilities:
Increase in reinsurance recoverables			(582)			(540)			(81)
Net change in accrued and deferred income taxes			85			459			886
Increase in insurance liabilities			2,416			1,426			768
Net change in other assets and other liabilities			(158)			88			(378)
Net cash provided by operating activities			4,093			3,871			3,489
Investing Activities
Proceeds from the sale/maturity/prepayment of:
Fixed maturities, available-for-sale			22,457			19,534			18,499
Equity securities at fair value			626			1,485			1,553
Mortgage loans			1,506			948			771
Partnerships			537			167			238
Payments for the purchase of:
Fixed maturities, available-for-sale			(21,754)			(21,112)			(19,881)
Equity securities at fair value			(1,420)			(962)			(1,316)
Mortgage loans			(2,386)			(1,264)			(1,275)
Partnerships			(1,317)			(491)			(303)
Net proceeds from (payments for) derivatives			(7)			112			32
Net additions to property and equipment			(133)			(114)			(105)
Net proceeds from (payments for) short-term investments			(417)			(368)			1,491
Other investing activities, net			(169)			(1)			49
Proceeds from businesses sold, net of cash transferred			11			—			—
Amounts paid for business acquired, net of cash acquired			—			—			(1,901)
Net cash used for investing activities			(2,466)			(2,066)			(2,148)
Financing Activities
Deposits and other additions to investment and universal life-type contracts			89			60			123
Withdrawals and other deductions from investment and universal life-type contracts			(75)			(102)			(124)
Net decrease in securities loaned or sold under agreements to repurchase			—			(587)			(323)
Repayment of debt			—			(500)			(1,583)
Proceeds from the issuance of debt			588			—			1,376
Net issuance (return) of shares under incentive and stock compensation plans			25			(21)			(6)
Treasury stock acquired			(1,702)			(150)			(200)
Dividends paid on preferred stock			(21)			(21)			(21)
Dividends paid on common stock			(485)			(457)			(433)
Net cash used for financing activities			(1,581)			(1,778)			(1,191)
Foreign exchange rate effect on cash			(6)			8			(9)
Net increase in cash and restricted cash, including cash classified within assets held for sale			40			35			141
Less: Net increase (decrease) in cash classified as assets held for sale			(58)			58			—
Net increase (decrease) in cash and restricted cash			98			(23)			141
Cash and restricted cash — beginning of period			239			262			121
Cash and restricted cash — end of period			$	337		$	239		$	262
Supplemental Disclosure of Cash Flow Information
Income tax paid (received)			$	496		$	(71)		$	(396)
Interest paid			$	214		$	232		$	261

See Notes to Consolidated Financial Statements.

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Table of Contents			Index to Consolidated Financial Statements and Schedules
Note 1 - Basis of Presentation and Significant Accounting Policies

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Dollar amounts in millions, except for per share data, unless otherwise stated)

1. BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES

The Hartford Financial Services Group, Inc. is a holding company for insurance and financial services subsidiaries that provide property and casualty insurance, group life and disability products and mutual funds and exchange-traded products to individual and business customers in the United States as well as in the United Kingdom, and other international locations (collectively, “The Hartford”, the “Company”, “we” or “our”).

On December 29, 2021, the Company completed the sale of all of the issued and outstanding equity of Navigators Holdings (Europe) N.V., a Belgium holding company, and its subsidiaries, Bracht, Deckers & Mackelbert N.V. (“BDM”) and Assurances Contintales Contintale Verzekeringen N.V. (“ASCO”), (collectively referred to as "Continental Europe Operations"). For further discussion of this transaction, see Note 22 - Business Dispositions.

On May 23, 2019, the Company completed the acquisition of The Navigators Group, Inc. ("Navigators Group"), a global specialty underwriter, for $70 a share, or $2.137 billion in cash, including transaction expenses. For further discussion of these transactions, see Note 2 - Business Acquisitions and Note 22 - Business Dispositions.

The Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. Generally Accepted Accounting Principles”) which differ materially from the accounting practices prescribed by various insurance regulatory authorities.

Consolidation

The Consolidated Financial Statements include the accounts of The Hartford Financial Services Group, Inc., and entities in which the Company directly or indirectly has a controlling financial interest. Entities in which the Company has significant influence over the operating and financing decisions but does not control are reported using the equity method. Intercompany transactions and balances between The Hartford and its subsidiaries and affiliates have been eliminated.

Use of Estimates

The preparation of financial statements in conformity with U.S. Generally Accepted Accounting Principles ("GAAP") requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

The most significant estimates include those used in determining property and casualty and group long-term disability insurance product reserves, net of reinsurance; evaluation of goodwill for impairment; valuation of investments and derivative instruments; and contingencies relating to corporate litigation and regulatory matters.

Reclassifications

Certain reclassifications have been made to prior year financial information to conform to the current year presentation.

Adoption of New Accounting Standards

Goodwill

On January 1, 2020, the Company adopted the Financial Accounting Standards Board's ("FASB") updated guidance on testing goodwill for impairment with no effect at adoption. The updated guidance requires impairment of goodwill if the carrying value of the reporting unit is greater than the estimated fair value, with the amount of the impairment not to exceed the carrying value of the reporting unit’s goodwill. Goodwill is reviewed for impairment at least annually and more frequently if events occur or circumstances change that would indicate that a triggering event for a potential impairment has occurred. Under the updated guidance, changes in market-based factors are more likely to result in a goodwill impairment than under the prior accounting guidance, whether a reporting unit's fair value is estimated using an income approach or a market approach. For example, changes in the weighted average cost of capital that is used to discount expected cash flows under the income approach or changes in market-based factors such as peer company price to earnings multiples or price to book multiples under a market approach can significantly affect changes to the estimated fair value of each reporting unit and such changes could result in impairments that have a material effect on our results of operations and financial condition.

Financial Instruments - Credit Losses

On January 1, 2020, the Company adopted the FASB’s updated guidance for recognition and measurement of credit losses on financial instruments. The new guidance replaces the “incurred loss” approach with an “expected loss” model for recognizing credit losses for financial instruments carried at other than fair value. Under the new model, for financial instruments carried at other than fair value, such as mortgage loans, reinsurance recoverables and receivables, an allowance for credit losses ("ACL") is recognized which is an estimate of credit losses expected over the life of financial instruments. Under the prior accounting model an ACL was recognized using an incurred loss approach. The new guidance also requires that we estimate a liability for credit losses ("LCL") on off balance sheet credit exposures such as financial guarantees and mortgage loan commitments that the Company cannot unconditionally cancel.

Credit losses on fixed maturities, available-for-sale ("AFS") carried at fair value continue to be measured based on the present value of expected future cash flows compared to amortized cost; however, the losses are now recognized through

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Table of Contents			Index to Consolidated Financial Statements and Schedules
Note 1 - Basis of Presentation and Significant Accounting Policies

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

an ACL and no longer as an adjustment to the amortized cost. Recoveries of credit losses on fixed maturities, AFS are now recognized as reversals of the ACL and no longer accreted as investment income through an adjustment to the investment yield. The ACL on fixed maturities, AFS cannot cause the net carrying value to be below fair value and, therefore, it is possible that future increases in fair value due to decreases in market interest rates could cause the reversal of the ACL and increase net income. The new guidance also requires purchased financial assets with a more-than-insignificant amount of credit deterioration since original issuance to be recorded based on contractual amounts due and an initial allowance recorded at the date of purchase.

The Company adopted the guidance effective January 1, 2020, through a cumulative-effect adjustment that decreased retained earnings by $18, representing a net increase to the ACL and LCL, after tax. No ACL was recognized at adoption for fixed maturities, AFS; rather, these investments are evaluated for an ACL prospectively. The Company does not have any purchased financial assets with a more than insignificant amount of credit deterioration since original issuance.

Impact of Adoption on Consolidated Balance Sheet

			Balance as of January 1, 2020
			Opening Balance			Cumulative Effect of Accounting Change			Adjusted Opening Balance
Mortgage loans			$	4,215					$	4,215
ACL on mortgage loans			—			$	(19)		(19)
Mortgage loans, net of ACL			4,215			(19)			4,196
Premiums receivable and agents’ balances			4,529						4,529
ACL on premiums receivable and agents' balances			(145)			23			(122)
Premiums receivable and agents' balances, net of ACL			4,384			23			4,407
Reinsurance recoverables			5,641						5,641
ACL and allowance for disputed amounts on reinsurance recoverables			(114)			(2)			(116)
Reinsurance recoverables, net of allowance for uncollectible reinsurance			5,527			(2)			5,525
Deferred income tax asset, net			299			5			304
Other liabilities			(5,157)			(25)			(5,182)
Retained Earnings			$	12,685		$	(18)		$	12,667

Summary of Adoption Impacts

Net increase to ACL and LCL			$	(23)
Net tax effects			5
Net decrease to retained earnings			$	(18)

Reference Rate Reform

On March 12, 2020, the Company adopted the FASB’s temporary guidance, which allows The Hartford to account for contract modifications made solely due to rate reform (such as replacing London Inter-Bank Offered Rate ("LIBOR") with another reference rate) as continuations of existing contracts and to maintain hedge accounting when the hedging effectiveness between a financial instrument and its hedge is only affected by the change to a replacement rate. As a result, The Hartford will not recognize gains and losses during the transition period of LIBOR to an alternative reference rate that would otherwise have arisen from accounting assessments and remeasurements. The guidance expires for contract modifications made and hedge relationships entered into or evaluated after December 31, 2022. The Company is not required to measure the effect of adoption on its financial position, cash flows or net income because the guidance

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THE HARTFORD FINANCIAL SERVICES GROUP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

provides relief from accounting for the effects of the change to a replacement rate.

Future Adoption of New Accounting Standards

Reserve for Future Policy Benefits

The FASB issued new guidance on accounting for long-duration insurance contracts. The Company’s long-duration insurance contracts include paid-up life insurance and whole-life insurance policies resulting from conversion from group life policies and run-off structured settlement and terminal funding agreement liabilities with total future policy benefit reserves of $596 and $638 as of December 31, 2021 and 2020, respectively. Under existing guidance, a reserve for future policy benefits is calculated as the present value of future benefits and related expenses less the present value of any future premiums using assumptions “locked in” at the time the policies were issued, including discount rate, lapse rate, mortality, and expense assumptions. Under existing guidance, assumptions are only updated if there is an expected premium deficiency. The new guidance will require that underlying cash flow assumptions (such as for lapse rate and mortality) be reviewed and updated at least annually in the same quarter each year. The new guidance also requires that the discount rate assumption be updated each quarter and be based on an upper-medium grade (low-credit-risk) fixed-income investment yield. The change in the reserve estimate as a result of updating cash flow assumptions will be recognized in net income. The change in the reserve estimate as a result of updating the discount rate assumption will be recognized in other comprehensive income. Because reserves will be based on updated assumptions and no longer locked in at contract inception, there will no longer be a test for premium deficiency. The new guidance will be effective January 1, 2023, and will be applied retrospectively to January 1, 2021 (the “transition date”). The Company will not early adopt the updated guidance and will apply a modified retrospective transition method.

The Company’s implementation activities are ongoing and include reviewing and validating methodologies, data and assumptions used to estimate the reserve for future policy benefits and developing disclosures as required by the new guidance. The Company expects the adoption of the new guidance to result in an increase to the reserve for future policy benefits and a corresponding decrease to accumulated other comprehensive income ("AOCI") as of the transition date because market upper-medium grade (low-credit-risk) fixed-income investment yields were lower as of the transition date than the locked in rates that were previously used to discount the reserves. The adoption is not expected to have a material effect on the Company’s total liabilities, stockholders’ equity or results of operations.

Significant Accounting Policies

The Company’s significant accounting policies are as follows:

Revenue Recognition

Premium Revenue from Direct Insurance and Assumed Reinsurance

Property and casualty premiums are earned on a pro rata basis over the policy period and include accruals for policies that have been written by agents but not yet reported to us, as well as ultimate premium revenue anticipated under auditable and retrospectively rated policies. We estimate the amount of premium not yet reported based on current and historical trends of the business being written. Such estimates are regularly reviewed and updated and any resulting adjustments are included in the current year's results. Unearned premiums represent the premiums applicable to the unexpired terms of policies in force, or period of risk.

Group life, disability and accident premiums are generally due from policyholders and recognized as revenue on a pro rata basis over the period of the contracts.

An estimated ACL is recorded on the basis of periodic evaluations of balances due from insureds and considering historical credit loss information, adjusted for current economic conditions and beginning January 1, 2020, reasonable and supportable forecasts when appropriate . The Company records total credit loss expenses related to premiums receivable in insurance operating costs and other expenses. Write-offs of premiums receivable and agents' balances and any related ACL are recorded in the period in which the balance is deemed uncollectible. Refer to Note 8 - Premiums Receivable and Agents' Balances for further discussion regarding the allowance for doubtful accounts included in premiums receivable and agents’ balances.

Revenue from Non-Insurance Contracts with Customers

Installment fees are charged on property and casualty insurance contracts for billing the insurance customer in installments over the policy term. These fees are recognized in fee income as earned on collection.

Insurance servicing revenues within Personal Lines consist of up-front commissions earned for collecting premiums and processing claims on insurance policies for which The Hartford does not assume underwriting risk, predominantly related to the National Flood Insurance Plan program. These insurance servicing revenues are recognized over the period of the flood program's policy terms.

Group Benefits earns fee income from employers for the administration of underwriting, implementation and claims processing for employer self-funded plans and for leave management services. Fees are recognized as services are provided and collected monthly.

Hartford Funds provides investment management, administrative and distribution services to mutual funds and exchange-traded products. The Company assesses investment advisory, distribution and other asset management fees primarily based on the average daily net asset values from mutual funds and exchange-traded products, which are

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THE HARTFORD FINANCIAL SERVICES GROUP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

recorded in the period in which the services are provided and are collected monthly. Fluctuations in domestic and international markets and related investment performance, volume and mix of sales and redemptions of mutual funds or exchange-traded products, and other changes to the composition of assets under management are all factors that ultimately have a direct effect on fee income earned.

Hartford Funds other fees primarily include transfer agent fees, generally assessed as a charge per account, and are recognized as fee income in the period in which the services are provided with payments collected monthly.

Corporate investment management and other fees are primarily for managing third party invested assets, including management of a portion of the invested assets of The Hartford’s former life and annuity business. These fees, calculated based on the average quarterly net asset values, are recorded in the period in which the services are provided and are collected quarterly. Fluctuations in markets and interest rates and other changes to the composition of assets under management are all factors that ultimately have a direct effect on fee income earned.

Dividends to Policyholders

Policyholder dividends are paid to certain property and casualty policyholders. Policies that receive dividends are referred to as participating policies. Participating dividends to policyholders are accrued and reported in insurance operating costs and other expenses and other liabilities using an estimate of the amount to be paid based on underlying contractual obligations under policies and applicable state laws.

Net written premiums for participating property and casualty insurance policies represented 7%, 7% and 9% of total net written premiums for the years ended December 31, 2021, 2020 and 2019, respectively. Participating dividends to property and casualty policyholders were $24, $29 and $30 for the years ended December 31, 2021, 2020 and 2019, respectively.

There were no additional amounts of income allocated to participating policyholders.

Investments

Overview

The Company’s investments in fixed maturities include bonds, structured securities, and redeemable preferred stock and commercial paper. Most of these investments are classified as AFS and are carried at fair value. The after tax difference between fair value and cost or amortized cost is reflected in stockholders’ equity as a component of AOCI. Equity securities are measured at fair value with any changes in valuation reported in net income. Mortgage loans are recorded at the outstanding principal balance adjusted for amortization of premiums or discounts and net of an ACL. Short-term investments are carried at amortized cost, which approximates fair value. Limited partnerships and other alternative investments are reported at their carrying value and are primarily accounted for under the equity method with the Company’s share of earnings included in net investment income. Recognition of income related to limited partnerships and other alternative investments is delayed due to the availability of the related financial information, as private equity and other funds are generally on a three-month delay.

Accordingly, income for the years ended December 31, 2021, 2020, and 2019 may not include the full impact of current year changes in valuation of the underlying assets and liabilities of the funds, which are generally obtained from the limited partnerships. Other investments primarily consist of investments of consolidated investment funds for which the Company has provided seed money and reports the underlying investments at fair value with changes in the fair value recognized in income consistent with accounting requirements for investment companies. Also included in other investments are derivative instruments which are carried at fair value, overseas deposits which are measured at fair value using the net asset value as a practical expedient, equity fund investments, and certain investments for which the Company has elected the fair value option ("FVO"). These investments are carried at fair value and changes in value are recorded in net realized gains and losses.

Net Realized Gains and Losses

Net realized gains and losses from investment sales are reported as a component of revenues and are determined on a specific identification basis. Net realized gains and losses also result from fair value changes in equity securities, fixed maturities, FVO, and derivatives contracts that do not qualify, or are not designated, as a hedge for accounting purposes. Prior to January 1, 2020, impairments of fixed maturities and changes in mortgage loan valuation allowances were recognized as net realized losses as discussed in Note 6 -Investments. Effective January 1, 2020, the Company records net credit losses on fixed maturities, AFS and changes in the ACL on mortgage loans as a component of net realized gains and losses. For further information, see Financial Instruments - Credit Losses discussion above.

Net Investment Income

Interest income from fixed maturities and mortgage loans is recognized when earned on the constant effective yield method based on the estimated timing of cash flows. Most premiums and discounts on fixed maturities are amortized to the maturity date. Premiums on callable bonds may be amortized to call dates based on call prices. For securitized financial assets subject to prepayment risk, yields are recalculated and adjusted periodically to reflect historical and/or estimated future prepayments using the retrospective method. For certain other asset-backed securities, including securities that previously had an ACL and interest only securities, any yield adjustments are made using the prospective method. Prepayment fees and make-whole payments on fixed maturities and mortgage loans are recorded in net investment income when earned. For equity securities, dividends are recognized as investment income on the ex-dividend date. Limited partnerships and other alternative investments primarily use the equity method of accounting to recognize the Company’s share of earnings. Prior to January 1, 2020, for impaired fixed maturities, the Company accreted the new amortized cost to the estimated future cash flows over the expected remaining life of the investment by prospectively adjusting the effective yield, if necessary. Effective January 1, 2020, the Company no longer records credit losses as adjustments to the amortized cost of the fixed maturity but rather records an ACL. Future changes in the ACL resulting from improvements in expected future cash flows are not recorded as adjustments to yield through net investment income but are recorded through net realized gains and losses. For fixed maturities with an ACL, net investment income is recognized at

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THE HARTFORD FINANCIAL SERVICES GROUP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

the original effective rate and accretion of the ACL is recognized through net realized gains and losses. For further information, see Financial Instruments - Credit Losses discussion above. The Company’s non-income producing investments were not material for the years ended December 31, 2021, 2020 and 2019.

Derivative Instruments

Overview

The Company utilizes a variety of over-the-counter ("OTC") derivatives, derivatives cleared through central clearing houses ("OTC-cleared") and exchange traded derivative instruments as part of its overall risk management strategy as well as to engage in income generation covered call transactions and replication transactions. The types of instruments may include swaps, caps, floors, forwards, futures and options to achieve the following Company-approved objectives:

• to hedge risk arising from interest rate, equity market, commodity market, credit spread and issuer default, price or currency exchange rates or volatility;

• to manage liquidity;

• to control transaction costs;

• to enter into income generation covered call transactions and synthetic replication transactions.

Interest rate and credit default swaps involve the periodic exchange of cash flows with other parties, at specified intervals, calculated using agreed upon rates or other financial variables and notional principal amounts. Generally, little to no cash or principal payments are exchanged at the inception of the contract. Typically, at the time a swap is entered into, the cash flow streams exchanged by the counterparties are equal in value.

The Company clears certain interest rate swap and credit default swap derivative transactions through central clearing houses. OTC-cleared derivatives require initial collateral at the inception of the trade in the form of cash or highly liquid securities, such as U.S. Treasuries and government agency investments. Central clearing houses also require additional cash as variation margin based on daily market value movements. For information on collateral, see the Derivative Collateral Arrangements section in Note 7 - Derivatives. In addition, OTC-cleared transactions include price alignment amounts either received or paid on the variation margin, which are reflected in realized gains and losses or, if characterized as interest, in net investment income.

Forward contracts are customized commitments that specify a rate of interest or currency exchange rate to be paid or received on an obligation beginning on a future start date and are typically settled in cash.

Financial futures are standardized commitments to either purchase or sell designated financial instruments, at a future date, for a specified price and may be settled in cash or through delivery of the underlying instrument. Futures contracts trade on organized exchanges. Margin requirements for futures are met by pledging securities or cash, and changes in the futures’ contract values are settled daily in cash.

Option contracts grant the purchaser, for a premium payment, the right to either purchase from or sell to the issuer a financial instrument at a specified price, within a specified period or on a stated date. The contracts may reference commodities, which grant the purchaser the right to either purchase from or sell to the issuer commodities at a specified price, within a specified period or on a stated date. Option contracts are typically settled in cash.

Foreign currency swaps exchange an initial principal amount in two currencies, agreeing to re-exchange the currencies at a future date, at an agreed upon exchange rate. There may also be a periodic exchange of payments at specified intervals calculated using the agreed upon rates and exchanged principal amounts.

The Company’s derivative transactions conducted in insurance company subsidiaries are used in strategies permitted under the derivative use plans required by the State of Connecticut, the State of Illinois and the State of New York insurance departments.

Accounting and Financial Statement Presentation of Derivative Instruments and Hedging Activities

Derivative instruments are recognized on the Consolidated Balance Sheets at fair value and are reported in Other Investments and Other Liabilities. For balance sheet presentation purposes, the Company has elected to offset the fair value amounts, income accruals, and related cash collateral receivables and payables of OTC derivative instruments executed in a legal entity and with the same counterparty or under a master netting agreement, which provides the Company with the legal right of offset.

On the date the derivative contract is entered into, the Company designates the derivative as (1) a hedge of the fair value of a recognized asset or liability (“fair value” hedge), (2) a hedge of the variability in cash flows of a forecasted transaction or of amounts to be received or paid related to a recognized asset or liability (“cash flow” hedge), (3) a hedge of a net investment in a foreign operation (“net investment” hedge) or (4) held for other investment and/or risk management purposes, which primarily involve managing asset or liability related risks and do not qualify for hedge accounting. The Company currently does not designate any derivatives as fair value or net investment hedges.

Cash Flow Hedges - Changes in the fair value of a derivative that is designated and qualifies as a cash flow hedge, including foreign-currency cash flow hedges, are recorded in AOCI and are reclassified into earnings when the variability of the cash flow of the hedged item impacts earnings. Gains and losses on derivative contracts that are reclassified from AOCI to current period earnings are included in the line item in the Consolidated Statements of Operations in which the cash flows of the hedged item are recorded. Periodic derivative net coupon settlements are recorded in the line item of the Consolidated Statements of Operations in which the cash flows of the hedged item are recorded. Cash flows from cash flow hedges are presented in the same category as the cash flows from the items being hedged in the Consolidated Statement of Cash Flows.

Other Investment and/or Risk Management Activities - The Company’s other investment and/or risk management activities

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THE HARTFORD FINANCIAL SERVICES GROUP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

primarily relate to strategies used to reduce economic risk or replicate permitted investments and do not receive hedge accounting treatment. Changes in the fair value, including periodic derivative net coupon settlements, of derivative instruments held for other investment and/or risk management purposes are reported in current period earnings as net realized gains and losses.

Hedge Documentation and Effectiveness Testing

To qualify for hedge accounting treatment, a derivative must be highly effective in mitigating the designated changes in fair value or cash flows of the hedged item. At hedge inception, the Company formally documents all relationships between hedging instruments and hedged items, as well as its risk-management objective and strategy for undertaking each hedge transaction. The documentation process includes linking derivatives that are designated as fair value, cash flow, or net investment hedges to specific assets or liabilities on the balance sheet or to specific forecasted transactions and defining the effectiveness testing methods to be used. The Company also formally assesses both at the hedge’s inception and ongoing on a quarterly basis, whether the derivatives that are used in hedging transactions have been and are expected to continue to be highly effective in offsetting changes in fair values, cash flows or net investment in foreign operations of hedged items. Hedge effectiveness is assessed primarily using quantitative methods as well as using qualitative methods. Quantitative methods include regression or other statistical analysis of changes in fair value or cash flows associated with the hedge relationship. Qualitative methods may include comparison of critical terms of the derivative to the hedged item.

Discontinuance of Hedge Accounting

The Company discontinues hedge accounting prospectively when (1) it is determined that the qualifying criteria are no longer met; (2) the derivative is no longer designated as a hedging instrument; or (3) the derivative expires or is sold, terminated or exercised.

When cash flow hedge accounting is discontinued because the Company becomes aware that it is not probable that the forecasted transaction will occur, the derivative continues to be carried on the balance sheet at its fair value, and gains and losses that were accumulated in AOCI are recognized immediately in earnings.

In other situations in which hedge accounting is discontinued, including those where the derivative is sold, terminated or exercised, amounts previously deferred in AOCI are reclassified into earnings when earnings are impacted by the hedged item.

Embedded Derivatives

The Company may purchase investments that contain embedded derivative instruments. When it is determined that (1) the embedded derivative possesses economic characteristics that are not clearly and closely related to the economic characteristics of the host contract and (2) a separate instrument with the same terms would qualify as a derivative instrument, the embedded derivative is bifurcated from the host for measurement purposes. The embedded derivative, which is reported with the host instrument in the Consolidated Balance Sheets, is carried at fair value with changes in fair value reported in net realized gains and losses.

Credit Risk of Derivative Instruments

Credit risk is defined as the risk of financial loss due to uncertainty of an obligor’s or counterparty’s ability or willingness to meet its obligations in accordance with agreed upon terms. Credit exposures are measured using the market value of the derivatives, resulting in amounts owed to the Company by its counterparties or potential payment obligations from the Company to its counterparties. The Company generally requires that OTC derivative contracts, other than certain forward contracts, be governed by International Swaps and Derivatives Association agreements which are structured by legal entity and by counterparty, and permit right of offset. Some agreements require daily collateral settlement based upon agreed upon thresholds. For purposes of daily derivative collateral maintenance, credit exposures are generally quantified based on the prior business day’s market value and collateral is pledged to and held by, or on behalf of, the Company to the extent the current value of the derivatives is greater than zero, subject to minimum transfer thresholds, if applicable. The Company also minimizes the credit risk of derivative instruments by entering into transactions with high quality counterparties primarily rated A or better, which are monitored and evaluated by the Company’s risk management team and reviewed by senior management. OTC-cleared derivatives are governed by clearing house rules. Transactions cleared through a central clearing house reduce risk due to their ability to require daily variation margin and act as an independent valuation source. In addition, the Company monitors counterparty credit exposure on a monthly basis to ensure compliance with Company policies and statutory limitations.

Cash and Restricted Cash

Cash represents cash on hand and demand deposits with banks or other financial institutions. Restrictions on cash primarily relate to funds that are held to support regulatory and contractual obligations.

Reinsurance

The Company cedes insurance to affiliated and unaffiliated insurers in order to limit its maximum losses and to diversify its exposures and provide statutory surplus relief. Such arrangements do not relieve the Company of its primary liability to policyholders. Failure of reinsurers to honor their obligations could result in losses to the Company. The Company also assumes reinsurance from other insurers and is a member of and participates in reinsurance pools and associations. Assumed reinsurance refers to the Company’s acceptance of certain insurance risks that other insurance companies or pools have underwritten.

Reinsurance accounting is followed for ceded and assumed transactions that provide indemnification against loss or liability relating to insurance risk (i.e. risk transfer). To meet risk transfer requirements, a reinsurance agreement must include insurance risk, consisting of underwriting and timing risk, and a reasonable possibility of a significant loss to the reinsurer. If the ceded and assumed transactions do not meet risk transfer requirements, the Company accounts for these transactions as deposit transactions. As of December 31, 2021, the Company's deposit liability was $99 reported in other liabilities.

Premiums, benefits, losses and loss adjustment expenses reflect the net effects of ceded and assumed reinsurance

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THE HARTFORD FINANCIAL SERVICES GROUP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

transactions. Included in other assets are prepaid reinsurance premiums, which represent the portion of premiums ceded to reinsurers applicable to the unexpired terms of the reinsurance contracts. Reinsurance recoverables are balances due from reinsurance companies for paid and unpaid losses and loss adjustment expenses and are presented net of an allowance for uncollectible reinsurance. Changes in the allowance for uncollectible reinsurance are reported in benefits, losses and loss adjustment expenses in the Company's Consolidated Statements of Operations.

The Company periodically evaluates the recoverability of its reinsurance recoverable assets and establishes an allowance for uncollectible reinsurance. The allowance for uncollectible reinsurance reflects management’s best estimate of reinsurance cessions that may be uncollectible in the future due to reinsurers’ unwillingness or inability to pay. The allowance for uncollectible reinsurance comprises an ACL and an allowance for disputed balances. Based on this analysis, the Company may adjust the allowance for uncollectible reinsurance or charge off reinsurer balances that are determined to be uncollectible. The Company records credit losses related to reinsurance recoverables in benefits losses and loss adjustment expenses. Write-offs of reinsurance recoverables and any related ACL are recorded in the period in which the balance is deemed uncollectible. Expected recoveries are included in the estimate of the ACL.

Retroactive reinsurance agreements, including adverse development covers, are reinsurance agreements under which our reinsurer agrees to reimburse us as a result of past insurable events. For these agreements, the consideration paid in excess of the estimated ultimate losses recoverable under the agreement at inception is recognized as a loss on reinsurance transaction. The benefit of subsequent adverse development ceded up to the total consideration paid is recognized as ceded losses, which are a reduction of incurred losses and loss adjustment expenses. The excess of the estimated amounts ultimately recoverable under the agreement over the consideration paid is recognized as a deferred gain liability and amortized into income over the period the ceded losses are recovered in cash from the reinsurer. The amount of the deferred gain liability is recalculated each period based on cumulative recoveries not yet collected relative to the latest estimate of ultimate losses recoverable. Ceded loss reserves under retroactive agreements were $1.3 billion and $1.1 billion, and the deferred gain liability reported in other liabilities was $574 and $328, as of December 31, 2021 and 2020, respectively. In any given period, the change in deferred gain included in net income includes amortization of the deferred gain based on the percentage of ultimate ceded losses collected plus any change in the deferred gain liability due to changes in the estimated ultimate losses recoverable. The effect on income from change in the deferred gain was a charge to earnings of $246, $312 and $16 before tax for the years ended December 31, 2021, 2020, and 2019 respectively.

Deferred Policy Acquisition Costs

DAC represents costs that are directly related to the acquisition of new and renewal insurance contracts and incremental direct costs of contract acquisition that are incurred in transactions with independent third parties or in compensation to employees. Such costs primarily include commissions, premium taxes, costs

of policy issuance and underwriting, and certain other expenses that are directly related to successfully issued contracts.

For property and casualty insurance products and group life, disability and accident contracts, costs are deferred and amortized ratably over the period the related premiums are earned. Deferred acquisition costs are reviewed to determine if they are recoverable from future income, and if not, are charged to expense. Anticipated investment income is considered in the determination of the recoverability of DAC.

Income Taxes

The Company recognizes taxes payable or refundable for the current year and deferred taxes for the tax consequences of temporary differences between the financial reporting and tax basis of assets and liabilities. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years the temporary differences are expected to reverse. A deferred tax provision is recorded for the tax effects of differences between the Company's current taxable income and its income before tax under generally accepted accounting principles in the Consolidated Statements of Operations. For deferred tax assets, the Company records a valuation allowance that is adequate to reduce the total deferred tax asset to an amount that will more likely than not be realized.

Goodwill

Goodwill represents the excess of the cost to acquire a business over the fair value of net assets acquired. Goodwill is not amortized but is reviewed for impairment at least annually or more frequently if events occur or circumstances change that would indicate that a triggering event for a potential impairment has occurred. Goodwill is tested for impairment by comparing the fair value of a reporting unit to its carrying value. Goodwill is impaired up to the amount that the carrying value of the reporting unit exceeds the fair value. A reporting unit is defined as an operating segment or one level below an operating segment. The Company’s reporting units, for which goodwill has been allocated consist of Commercial Lines, Personal Lines, Group Benefits, and Hartford Funds.

Management’s determination of the fair value of each reporting unit incorporates multiple inputs into discounted cash flow calculations, including assumptions that market participants would make in valuing the reporting unit. Assumptions include levels of economic capital required to support the business, future business growth, earnings projections, the weighted average cost of capital used for purposes of discounting and, for the Hartford Funds segment, assets under management. Decreases in business growth, decreases in earnings projections and increases in the weighted average cost of capital will all cause a reporting unit’s fair value to decrease, increasing the possibility of impairments.

Intangible Assets

Acquired intangible assets on the Consolidated Balance Sheets include purchased customer relationship and agency or other distribution rights and licenses measured at fair value at acquisition. The Company amortizes finite-lived other intangible assets over their useful lives generally on a straight-line basis over the period of expected benefit, ranging from 1 to 15 years. Management revises amortization periods if it believes there has been a change in the length of time that an intangible asset will

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Note 1 - Basis of Presentation and Significant Accounting Policies

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

continue to have value. Indefinite-lived intangible assets are not subject to amortization. Intangible assets are assessed for impairment generally when events or circumstances indicate a potential impairment and at least annually for indefinite-lived intangibles. Finite-lived intangible assets are impaired if the carrying amount is not recoverable from undiscounted cash flows. Indefinite-lived intangible assets are impaired if the carrying amount exceeds fair value. Impaired intangible assets are written down to fair value.

Property and Equipment

Property and equipment, which includes capitalized software, is carried at cost net of accumulated depreciation. Depreciation is based on the estimated useful lives of the various classes of property and equipment and is recognized principally on the straight-line method. Accumulated depreciation was $2.3 billion and $2.1 billion as of December 31, 2021 and 2020, respectively. Depreciation expense was $342, $313, and $283 for the years ended December 31, 2021, 2020 and 2019, respectively.

Leases

Leases are classified as financing or operating leases. Where the lease is economically similar to a purchase because The Hartford obtains control of the underlying asset, the lease is classified as a financing lease and the Company recognizes amortization of the right of use asset and interest expense on the liability. Where the lease provides The Hartford with only the right to control the use of the underlying asset over the lease term and the lease term is greater than one year, the lease is an operating lease and the lease cost is recognized as rental expense over the lease term on a straight-line basis. Leases with a term of one year or less are also expensed over the lease term but not recognized on the balance sheet.

Unpaid Losses and Loss Adjustment Expenses

For property and casualty and group life and disability insurance and assumed reinsurance products, the Company establishes reserves for unpaid losses and loss adjustment expenses to provide for the estimated costs of paying claims under insurance policies written by the Company. These reserves include estimates for both claims that have been reported and those that have not yet been reported, and include estimates of all losses and loss adjustment expenses associated with processing and settling these claims. Estimating the ultimate cost of future losses and loss adjustment expenses is an uncertain and complex process. This estimation process is based significantly on the assumption that past developments are an appropriate predictor of future events, and involves a variety of actuarial techniques that analyze experience, trends and other relevant factors. The effects of inflation are implicitly considered in the reserving process. A number of complex factors influence the uncertainties involved with the reserving process including social and economic trends and changes in the concepts of legal liability and damage awards. Accordingly, final claim settlements may vary from the present estimates, particularly when those payments may not occur until well into

the future. The Company regularly reviews the adequacy of its estimated losses and loss adjustment expense reserves by reserve line within the various reporting segments. Adjustments to previously established reserves are reflected in the operating results of the period in which the adjustment is determined to be necessary. Such adjustments could possibly be significant, reflecting any variety of new and adverse or favorable trends.

Most of the Company’s property and casualty insurance products reserves are not discounted. However, the Company has discounted to present value certain reserves for indemnity payments that are due to claimants under workers’ compensation policies because the payment pattern and the ultimate costs are reasonably fixed and determinable on an individual claim basis. The discount rate is based on the risk free rate for the expected claim duration as determined in the year the claims were incurred. The Company also has discounted liabilities for structured settlement agreements that provide fixed periodic payments to claimants. These structured settlements include annuities purchased to fund unpaid losses for permanently disabled claimants. These structured settlement liabilities are discounted to present value using the rate implicit in the purchased annuities and the purchased annuities are accounted for within reinsurance recoverables.

Group life and disability contracts with long-tail claim liabilities are discounted because the payment pattern and the ultimate costs are reasonably fixed and determinable on an individual claim basis. The discount rates are estimated based on investment yields expected to be earned on the cash flows net of investment expenses and expected credit losses. The Company establishes discount rates for these reserves in the year the claims are incurred (the incurral year) which is when the estimated settlement pattern is determined. The discount rate for life and disability reserves acquired from Aetna's U.S. group life and disability business were based on interest rates in effect at the acquisition date of November 1, 2017.

For further information about how unpaid losses and loss adjustment expenses are established, see Note 12 - Reserve for Unpaid Losses and Loss Adjustment Expenses.

Foreign Currency

Foreign currency translation gains and losses are reflected in stockholders’ equity as a component of AOCI. The Company’s foreign subsidiaries’ balance sheet accounts are translated at the exchange rates in effect at each year end and income statement accounts are translated at the average rates of exchange prevailing during the year. The national currencies of the international operations are generally their functional currencies; however, the U.S. dollar is the functional currency of Lloyd's Syndicate 1221 ("Lloyd's Syndicate"), the Lloyd's Syndicate for which the Company is the sole corporate member, in the U.K. Gains and losses resulting from the remeasurement of foreign currency transactions are reflected in earnings in net realized gains (losses) in the period in which they occur

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Table of Contents			Note 2 - Business Acquisitions

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

2. BUSINESS ACQUISITIONS

Navigators Group

On May 23, 2019, The Hartford acquired 100% of the outstanding shares of Navigators Group for $70 a share, or $2.121 billion, comprised of cash of $2.098 billion and a liability for cash awards to replace share-based awards of $23. The acquisition of the specialty underwriter expands product offerings and geographic reach, and adds underwriting and industry talent to strengthen the Company’s value proposition to agents and customers. At acquisition, the Company recorded provisional estimates of the fair value of the assets acquired and liabilities assumed. In the second quarter of 2020, The Hartford finalized its provisional estimates and recorded additional assets

of $9 and liabilities of $7 with a net reduction in goodwill of $2. The measurement period adjustments, determined as if the accounting had been completed as of the acquisition date, had no effect on the Consolidated Statements of Operations for the twelve months ended December 31, 2020. The following table presents the preliminary allocation of the purchase price to the assets acquired and liabilities assumed as of the acquisition date, the measurement period adjustments recorded, and the final purchase price allocation.

Fair Value of Assets Acquired and Liabilities Assumed at the Acquisition Date

			Preliminary Values as of May 23, 2019 (as previously reported)			Measurement Period Adjustments			Adjusted Values as of May 23, 2019
Assets
Cash and invested assets			$	3,848		$	3		$	3,851
Premiums receivable			492			6			498
Reinsurance recoverables			1,100			(3)			1,097
Prepaid reinsurance premiums			238			—			238
Other intangible assets			580			—			580
Property and equipment			83			—			83
Other assets			99			3			102
Total Assets Acquired			6,440			9			6,449
Liabilities
Unpaid losses and loss adjustment expenses			2,823			—			2,823
Unearned premiums			1,219			—			1,219
Long-term debt			284			—			284
Deferred income taxes, net			48			(1)			47
Other liabilities			568			8			576
Total Liabilities Assumed			4,942			7			4,949
Net identifiable assets acquired			1,498			2			1,500
Goodwill [1]			623			(2)			621
Net Assets Acquired			$	2,121		$	—		$	2,121

[1] Non-deductible for income tax purposes.

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Table of Contents			Note 2 - Business Acquisitions

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

Intangible Assets Recorded in Connection with the Acquisition

Asset			Amount			Weighted Average Expected Life
Value of in-force contracts - Property and Casualty ("P&C")			$	180		1
Distribution relationships			302			15
Trade name			17			10
Total finite life intangibles			499			10
Capacity of Lloyd's Syndicate			66
Licenses			15
Total indefinite life intangibles			81
Total other intangible assets			$	580

The value of in-force contracts represents the estimated profits relating to the unexpired contracts in force net of related prepaid reinsurance at the acquisition date through expiry of the contracts. The value of distribution relationships was estimated using net cash flows expected to come from the renewals of in-force contracts and new business sold through existing distribution partners less costs to service the related policies. The value of the trade name was estimated using an assumed cost of a market-based royalty fee applied to net cash flows expected to come from business marketed as Navigators, a brand of The Hartford. Lloyd's of London is an insurance market-place operating worldwide ("Lloyd's"). Lloyd's does not underwrite risks. Corporate members accept underwriting risks through the syndicates that they form. The Company accepts risks as the sole corporate member of Lloyd's Syndicate. The value of the capacity of Lloyd’s Syndicate was estimated using net cash flows attributable to Navigators Group's right to underwrite business up to an approved level of premium in the Lloyd’s market. The values for in-force contracts, the distribution relationships, trade name and the capacity of the Lloyd's Syndicate were estimated using a discounted cash flow method. Significant inputs to the valuation models include estimates of expected new business, premium retention rates, investment returns, claim costs, expenses and discount rates based on a weighted average cost of capital. The value of licenses to write insurance in over 50 U.S. jurisdictions was estimated based on recent transactions for shell companies.

Property and equipment includes real estate owned and right of use assets under leases that were valued based on current values and market rental rates, software that was valued based on estimated replacement cost and furniture and equipment. These will be amortized over periods consistent with the Company’s policy.

The fair value of unpaid losses and loss adjustment expenses net of related reinsurance recoverables was estimated based on the present value of expected future net unpaid loss and loss adjustment expense payments discounted using a risk-free interest rate as of the acquisition date plus a risk margin. The discount and risk margin amounts substantially offset.

Debt assumed in the transaction was valued based on the principal and interest payments discounted at the current market

yield. This debt was paid off in August 2019. For further discussion of this transaction, see Note 14 - Debt.

The $621 of goodwill recognized is largely attributable to the acquired employee workforce and underwriting talent, leverageable operating platform, improved investment yield and economies of scale. Goodwill is allocated to the Company's Commercial Lines reporting segment.

Immediately after closing on the acquisition of Navigators Group, effective May 23, 2019, the Company purchased an aggregate excess of loss reinsurance agreement covering adverse reserve development (“Navigators ADC”) from National Indemnity Company ("NICO") on behalf of Navigators Insurance Company and certain of its affiliates (collectively, “Navigators Insurers”). Under the Navigators ADC, the Navigators Insurers paid NICO a reinsurance premium of $91 in exchange for reinsurance coverage of $300 of adverse net loss reserve development that attaches $100 above the Navigators Insurers' existing net loss and allocated loss adjustment reserves as of December 31, 2018 subject to the treaty of $1.816 billion for accidents and losses prior to December 31, 2018. In addition to recognizing a $91 before tax charge to earnings in 2019 for the Navigators ADC reinsurance premium, the Company recognized a charge against earnings of $97 before tax in the second quarter of 2019 as a result of a review of Navigators Insurers’ net acquired reserves upon acquisition of the business. Navigators Insurers had previously recognized $52 before tax of adverse reserve development in the first quarter of 2019, including $32 of adverse development subject to the Navigators ADC. As such, reserve development of $97 before tax recognized upon acquisition of the business included $68 remaining of the $100 Navigators ADC retention for 2018 and prior accident years and $29 of adverse reserve development related to the 2019 accident year which is not covered by the Navigators ADC.

On 2018 and prior accident year reserves subject to the Navigators ADC, the Company recognized a total of $84 of adverse development in 2019, including the $68 of reserve development recorded upon acquisition of the business. The $84 of prior accident year reserve development was net of a $91 net reinsurance benefit recognized under the Navigators ADC. For information about the Navigators ADC after the acquisition date, refer to Note 12 - Reserve for Unpaid Losses and Loss Adjustment Expenses.

Since the acquisition date of May 23, 2019, the revenues and net losses of the business acquired have been included in the Company's Consolidated Statements of Operations in the Commercial Lines reporting segment with revenues of $1.0 billion and net losses of $167 during the period from the acquisition date to December 31, 2019, including the $91 before tax ($72 net of tax) of premium paid for the Navigators ADC, a charge of $97 before tax ($77 net of tax) for the increase in acquired reserves following the acquisition, a charge of $16 before tax ($13 net of tax) for the deferred gain on retroactive reinsurance and net investment income of $67 before tax ($54 net of tax). For further discussion of the Navigators ADC, see Note 12 - Reserve for Unpaid Losses and Loss Adjustment Expenses.

The Company recognized $17 of acquisition related costs for the twelve months ended December 31, 2019. These costs are

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Table of Contents			Note 2 - Business Acquisitions

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

included in insurance operating costs and other expenses in the Consolidated Statement of Operations.

The following table presents supplemental unaudited pro forma amounts of revenue and net income for the year ended December 31, 2019 for the Company as though the business was acquired on January 1, 2018. Pro forma adjustments include the revenue and earnings of Navigators Group for each period as well as amortization of identifiable intangible assets acquired.

Pro Forma Results for the Year Ended December 31

			Revenue			Earnings
2019 Supplemental (unaudited) combined pro forma			$	21,416		$	2,080

3. EARNINGS PER COMMON SHARE

Computation of Basic and Diluted Earnings per Common Share

			For the years ended December 31,
(In millions, except for per share data)			2021			2020			2019
Earnings
Net income			$	2,365		$	1,737		$	2,085
Less: Preferred stock dividends			21			21			21
Net income available to common stockholders			$	2,344		$	1,716		$	2,064
Shares
Weighted average common shares outstanding, basic			349.1			358.3			360.9
Dilutive effect of warrants [1]			—			—			0.5
Dilutive effect of stock-based awards under compensation plans			5.0			2.3			3.5
Weighted average common shares outstanding and dilutive potential common shares [2]			354.1			360.6			364.9
Net income available to common stockholders per common share
Basic			$	6.71		$	4.79		$	5.72
Diluted			$	6.62		$	4.76		$	5.66

*[1]*On June 26, 2019 the Capital Purchase Program warrants issued in 2009 expired.

*[2]*For additional information, see Note 16 - Equity and Note 20 - Stock Compensation Plans of Notes to Consolidated Financial Statements.

Basic earnings per common share is computed based on the weighted average number of common shares outstanding during the year. Diluted earnings per common share includes the dilutive effect of assumed exercise or issuance of warrants and stock-based awards under compensation plans.

Under the treasury stock method, for warrants and stock-based awards, shares are assumed to be issued and then reduced for

the number of shares repurchasable with theoretical proceeds at the average market price for the period. Contingently issuable shares are included for the number of shares issuable assuming the end of the reporting period was the end of the contingency period, if dilutive.

4. SEGMENT INFORMATION

The Company conducts business principally in five reporting segments comprising Commercial Lines, Personal Lines, Property & Casualty Other Operations, Group Benefits and Hartford Funds, as well as a Corporate category.

Over 95% of the Company’s revenues are generated in the United States (“U.S.”). The remaining revenues are generated in Europe and other international locations.

We report our results of operations consistent with the manner in which our chief operating decision maker ("CODM") reviews the business to assess performance, make operating decisions and allocate resources. The Company’s reporting segments, as well as the Corporate category, are as follows:

Commercial Lines

Commercial Lines provides workers’ compensation, property, automobile, general liability, umbrella, professional liability, bond, marine, livestock and assumed reinsurance to businesses in the U.S. and internationally, along with a variety of customized insurance products and risk management services including professional liability, bond, surety, and specialty casualty coverages.

Personal Lines

Personal Lines provides standard automobile, homeowners and personal umbrella coverages to individuals across the U.S., including a special program designed exclusively for members of AARP. This agreement provides an important competitive advantage given the size of the 50 plus population and the

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Table of Contents			Note 4 - Segment Information

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

strength of the AARP brand, and is in place through December 31, 2032.

Property & Casualty Other Operations

Property & Casualty Other Operations includes certain property and casualty operations, managed by the Company, that have discontinued writing new business and includes substantially all of the Company’s asbestos and environmental exposures.

Group Benefits

Group Benefits provides employers and associations with group life, accident and disability coverage, along with other products and services, including voluntary benefits, and group retiree health.

Hartford Funds

Hartford Funds offers investment products for retail and retirement accounts and provides investment management, distribution and administrative services such as product design, implementation and oversight. This business also manages a portion of the mutual funds which support the variable annuity products within the life and annuity business sold in May 2018.

Corporate

The Company includes in the Corporate category reserves for run-off structured settlement and terminal funding agreement liabilities, restructuring costs, capital raising activities (including equity financing, debt financing and related interest expense), transaction expenses incurred in connection with an acquisition, certain M&A costs, purchase accounting adjustments related to goodwill and other expenses not allocated to the reporting segments. Corporate also includes investment management fees and expenses related to managing third party business, including management a portion of the invested assets of Talcott Resolution Life, Inc. and its subsidiaries as well certain affiliates. In addition, up until June 30, 2021, Corporate included a 9.7% ownership interest in Hopmeadow Holdings LP, the legal entity that acquired Talcott Resolution in May 2018 (Hopmeadow Holdings, LP, Talcott Resolution Life Inc., and its subsidiaries are collectively referred to as "Talcott Resolution"). Refer to Note 6 - Investments for additional information.

Financial Measures and Other Segment Information

Certain transactions between segments occur during the year that primarily relate to tax settlements, insurance coverage, expense reimbursements, services provided, investment transfers and capital contributions. In addition, certain inter-segment transactions occur that relate to interest income on allocated surplus. Consolidated net income is unaffected by such transactions.

Revenues

			For the years ended December 31,
			2021			2020			2019
Earned premiums and fee income:
Commercial Lines
Workers’ compensation			$	3,172		$	3,034		$	3,314
Liability			1,622			1,401			1,064
Marine			228			251			147
Package business			1,665			1,540			1,471
Property			829			793			728
Professional liability			655			595			447
Bond			287			274			261
Assumed reinsurance			328			298			180
Automobile			789			754			713
Total Commercial Lines			9,575			8,940			8,325
Personal Lines
Automobile			2,059			2,081			2,248
Homeowners			927			961			987
Total Personal Lines [1]			2,986			3,042			3,235
Property & Casualty Other Operations			—			—			2
Group Benefits
Group disability			2,983			2,832			2,828
Group life			2,388			2,434			2,521
Other			316			270			254
Total Group Benefits			5,687			5,536			5,603
Hartford Funds
Mutual fund and Exchange-Traded Products ("ETP")			1,094			903			907
Talcott Resolution life and annuity separate accounts [2]			95			86			92
Total Hartford Funds			1,189			989			999
Corporate			50			58			60
Total earned premiums and fee income			19,487			18,565			18,224
Total net investment income			2,313			1,846			1,951
Net realized gains (losses)			509			(14)			395
Other revenues			81			126			170
Total revenues			$	22,390		$	20,523		$	20,740

*[1]*For 2021, 2020 and 2019, AARP members accounted for earned premiums of $2.7 billion, $2.8 billion and $2.9 billion, respectively.

*[2]*Represents revenues earned on the life and annuity separate account assets under management ("AUM") sold in May 2018 that is still managed by the Company's Hartford Funds segment.

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Table of Contents			Note 4 - Segment Information

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

Net Income (Loss)

			For the years ended December 31,
			2021			2020			2019
Commercial Lines			$	1,757		$	856		$	1,192
Personal Lines			385			718			318
Property & Casualty Other Operations			(95)			(168)			61
Group Benefits			249			383			536
Hartford Funds			217			170			149
Corporate			(148)			(222)			(171)
Net income			2,365			1,737			2,085
Preferred stock dividends			21			21			21
Net income available to common stockholders			$	2,344		$	1,716		$	2,064

Net Investment Income

			For the years ended December 31,
			2021			2020			2019
Commercial Lines			$	1,502		$	1,160		$	1,129
Personal Lines			157			157			179
Property & Casualty Other Operations			75			55			84
Group Benefits			550			448			486
Hartford Funds			5			4			7
Corporate			24			22			66
Net investment income			$	2,313		$	1,846		$	1,951

Amortization of DAC

			For the years ended December 31,
			2021			2020			2019
Commercial Lines			$	1,398		$	1,397		$	1,296
Personal Lines			230			244			259
Group Benefits			40			50			54
Hartford Funds			12			14			12
Corporate			—			1			1
Total amortization of DAC			$	1,680		$	1,706		$	1,622

Amortization of Other Intangible Assets

			For the years ended December 31,
			2021			2020			2019
Commercial Lines			$	29		$	28		$	18
Personal Lines			2			4			6
Group Benefits			40			40			41
Corporate			—			—			1
Total amortization of other intangible assets			$	71		$	72		$	66

Income Tax Expense (Benefit)

			For the years ended December 31,
			2021			2020			2019
Commercial Lines			$	402		$	176		$	270
Personal Lines			95			184			76
Property & Casualty Other Operations			(28)			(46)			12
Group Benefits			53			88			126
Hartford Funds			56			44			37
Corporate			(47)			(63)			(46)
Total income tax expense			$	531		$	383		$	475

Assets

			As of December 31,
			2021			2020
Commercial Lines			$	48,234		$	45,482
Personal Lines			5,587			5,969
Property & Casualty Other Operations			3,792			3,505
Group Benefits			14,442			14,732
Hartford Funds			720			662
Corporate			3,803			3,761
Total assets			$	76,578		$	74,111

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Table of Contents			Note 4 - Segment Information

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

Revenue from Non-Insurance Contracts with Customers

						For the years ended December 31,
			Revenue Line Item			2021			2020			2019
Commercial Lines
Installment billing fees			Fee income			$	34		$	30		$	35
Personal Lines
Installment billing fees			Fee income			32			34			37
Insurance servicing revenues			Other revenues			80			81			83
Group Benefits
Administrative services			Fee income			183			175			180
Hartford Funds
Advisor, distribution and other management fees			Fee income			1,086			901			911
Other fees			Fee income			103			88			88
Corporate
Investment management and other fees			Fee income			50			49			50
Transition service revenues			Other revenues			1			2			20
Total non-insurance revenues with customers						$	1,569		$	1,360		$	1,404

5. FAIR VALUE MEASUREMENTS

The Company carries certain financial assets and liabilities at estimated fair value. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market in an orderly transaction between market participants. Our fair value framework includes a hierarchy that gives the highest priority to the use of quoted prices in active markets, followed by the use of market observable inputs, followed by the use of unobservable inputs.

The fair value hierarchy levels are as follows:

Level 1 Fair values based primarily on unadjusted quoted prices for identical assets or liabilities, in active markets that the Company has the ability to access at the measurement date.

Level 2 Fair values primarily based on observable inputs, other than quoted prices included in Level 1, or based on prices for similar assets and liabilities.

Level 3 Fair values derived when one or more of the significant inputs are unobservable (including assumptions about risk). With little or no observable market, the determination of fair values uses considerable judgment and represents the Company’s best estimate of an amount that could be realized in a market exchange for the asset or liability. Also included are securities that are traded within illiquid markets and/or priced by independent brokers.

The Company will classify the financial asset or liability by level based upon the lowest level input that is significant to the determination of the fair value. In most cases, both observable inputs (e.g., changes in interest rates) and unobservable inputs (e.g., changes in risk assumptions) are used to determine fair values that the Company has classified within Level 3.

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Table of Contents			Note 5 - Fair Value Measurements

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

Assets and (Liabilities) Carried at Fair Value by Hierarchy Level as of December 31, 2021
			Total			Quoted Prices in Active Markets for Identical Assets (Level 1)			Significant Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)
Assets accounted for at fair value on a recurring basis
Fixed maturities, AFS
Asset backed securities ("ABS")			$	1,135		$	—		$	1,135		$	—
Collateralized loan obligations ("CLOs")			3,025			—			2,768			257
Commercial mortgage-backed securities ("CMBS")			4,119			—			3,923			196
Corporate			18,707			—			17,089			1,618
Foreign government/government agencies			910			—			905			5
Municipal			8,257			—			8,257			—
Residential mortgage-backed securities ("RMBS")			3,643			—			3,315			328
U.S. Treasuries			3,051			882			2,169			—
Total fixed maturities			42,847			882			39,561			2,404
Equity securities, at fair value			2,094			1,453			577			64
Derivative assets
Credit derivatives			2			—			2			—
Foreign exchange derivatives			6			—			5			1
Interest rate derivatives			(1)			—			(1)			—
Total derivative assets [1]			7			—			6			1
Fixed maturities, at fair value using the fair value option ("FVO") [2]			160			—			—			160
Short-term investments			3,697			1,627			1,990			80
Total assets accounted for at fair value on a recurring basis			$	48,805		$	3,962		$	42,134		$	2,709
Liabilities accounted for at fair value on a recurring basis
Derivative liabilities
Credit derivatives			$	(4)		$	—		$	(4)		$	—
Foreign exchange derivatives			—			—			1			(1)
Interest rate derivatives			(45)			—			(45)			—
Total derivative liabilities [3]			(49)			—			(48)			(1)
Total liabilities accounted for at fair value on a recurring basis			$	(49)		$	—		$	(48)		$	(1)

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Table of Contents			Note 5 - Fair Value Measurements

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

Assets and (Liabilities) Carried at Fair Value by Hierarchy Level as of December 31, 2020
			Total			Quoted Prices in Active Markets for Identical Assets (Level 1)			Significant Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)
Assets accounted for at fair value on a recurring basis
Fixed maturities, AFS
ABS			$	1,564		$	—		$	1,564		$	—
CLOs			2,780			—			2,420			360
CMBS			4,484			—			4,407			77
Corporate			20,273			—			19,392			881
Foreign government/government agencies			919			—			913			6
Municipal			9,503			—			9,503			—
RMBS			4,107			—			3,726			381
U.S. Treasuries			1,405			529			876			—
Total fixed maturities			45,035			529			42,801			1,705
Equity securities, at fair value			1,438			872			496			70
Derivative assets
Credit derivatives			21			—			21			—
Foreign exchange derivatives			1			—			1			—
Interest rate derivatives			1			—			1			—
Total derivative assets [1]			23			—			23			—
Short-term investments			3,283			2,663			590			30
Total assets accounted for at fair value on a recurring basis			$	49,779		$	4,064		$	43,910		$	1,805
Liabilities accounted for at fair value on a recurring basis
Derivative liabilities
Foreign exchange derivatives			$	(14)		$	—		$	(14)		$	—
Interest rate derivatives			(70)			—			(70)			—
Total derivative liabilities [3]			(84)			—			(84)			—
Total liabilities accounted for at fair value on a recurring basis			$	(84)		$	—		$	(84)		$	—

*[1]*Includes derivative instruments in a net positive fair value position after consideration of the accrued interest and impact of collateral posting requirements which may be imposed by agreements and applicable law. See footnote 3 to this table for derivative liabilities.

*[2]*Included within other investments on the Consolidated Balance Sheets.

*[3]*Includes derivative instruments in a net negative fair value position (derivative liability) after consideration of the accrued interest and impact of collateral posting requirements which may be imposed by agreements and applicable law.

The Company has overseas deposits included in other investments of $65 and $54 as of December 31, 2021 and December 31, 2020, respectively, which are measured at fair value using the net asset value as a practical expedient.

FIXED MATURITIES, EQUITY SECURITIES, SHORT-TERM INVESTMENTS, AND DERIVATIVES

Valuation Techniques

The Company generally determines fair values using valuation techniques that use prices, rates, and other relevant information evident from market transactions involving identical or similar instruments. Valuation techniques also include, where appropriate, estimates of future cash flows that are converted into a single discounted amount using current market expectations. The Company uses a "waterfall" approach

comprised of the following pricing sources and techniques, which are listed in priority order:

• Quoted prices, unadjusted, for identical assets or liabilities in active markets, which are classified as Level 1.

• Prices from third-party pricing services, which primarily utilize a combination of techniques. These services utilize recently reported trades of identical, similar, or benchmark securities making adjustments for market observable inputs available through the reporting date. If there are no recently reported trades, they may use a discounted cash flow technique to develop a price using expected cash flows based upon the anticipated future performance of the underlying collateral discounted at an estimated market rate. Both techniques develop prices that consider the time value of future cash flows and provide a margin for risk, including liquidity and credit risk. Most prices provided by third-party pricing services are classified as Level 2 because the inputs used in pricing the securities are observable. However, some securities that are less liquid or trade less actively are classified as Level 3. Additionally,

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			Index to Consolidated Financial Statements and Schedules
Table of Contents			Note 5 - Fair Value Measurements

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

certain long-dated securities, such as municipal securities and bank loans, include benchmark interest rate or credit spread assumptions that are not observable in the marketplace and are thus classified as Level 3.

• Internal matrix pricing is a valuation process internally developed for private placement securities for which the Company is unable to obtain a price from a third-party pricing service. Internal pricing matrices determine credit spreads that, when combined with risk-free rates, are applied to contractual cash flows to develop a price. The Company develops credit spreads using market based data for public securities adjusted for credit spread differentials between public and private securities, which are obtained from a survey of multiple private placement brokers. The market-based reference credit spread considers the issuer’s sector, financial strength, and term to maturity, using an independent public security index, while the credit spread differential considers the non-public nature of the security. Securities priced using internal matrix pricing are classified as Level 2 because the significant inputs are observable or can be corroborated with observable data.

• Independent broker quotes, which are typically non-binding, use inputs that can be difficult to corroborate with observable market based data. Brokers may use present value techniques using assumptions specific to the security types, or they may use recent transactions of similar securities. Due to the lack of transparency in the process that brokers use to develop prices, valuations that are based on independent broker quotes are classified as Level 3.

The fair value of derivative instruments is determined primarily using a discounted cash flow model or option model technique and incorporates counterparty credit risk. In some cases, quoted market prices for exchange-traded and OTC cleared derivatives may be used and in other cases independent broker quotes may be used. The pricing valuation models primarily use inputs that are observable in the market or can be corroborated by observable market data. The valuation of certain derivatives may include significant inputs that are unobservable, such as

volatility levels, and reflect the Company’s view of what other market participants would use when pricing such instruments.

Valuation Controls

The process for determining the fair value of investments is monitored by the Valuation Committee, which is a cross-functional group of senior management within the Company. The purpose of the Valuation Committee is to provide oversight of the pricing policy, procedures and controls, including approval of valuation methodologies and pricing sources. The Valuation Committee reviews market data trends, pricing statistics and trading statistics to ensure that prices are reasonable and consistent with our fair value framework. Controls and procedures used to assess third-party pricing services are reviewed by the Valuation Committee, including the results of annual due-diligence reviews. Controls include, but are not limited to, reviewing daily and monthly price changes, stale prices, and missing prices and comparing new trade prices to third-party pricing services, weekly price changes to published bond index prices, and daily OTC derivative market valuations to counterparty valuations. The Company has a dedicated pricing group that works with trading and investment professionals to challenge prices received by a third party pricing source if the Company believes that the valuation received does not accurately reflect the fair value. New valuation models and changes to current models require approval by the Valuation Committee. In addition, the Company’s enterprise-wide Operational Risk Management function provides an independent review of the suitability and reliability of model inputs, as well as an analysis of significant changes to current models.

Valuation Inputs

Quoted prices for identical assets in active markets are considered Level 1 and consist of on-the-run U.S. Treasuries, money market funds, exchange-traded equity securities, open-ended mutual funds, certain short-term investments, and exchange traded derivative instruments.

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			Index to Consolidated Financial Statements and Schedules
Table of Contents			Note 5 - Fair Value Measurements

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

Valuation Inputs Used in Levels 2 and 3 Measurements for Securities and Derivatives

			Level 2 Primary Observable Inputs			Level 3 Primary Unobservable Inputs
Fixed Maturity Investments
Structured securities (includes ABS, CLOs, CMBS and RMBS)
			• Benchmark yields and spreads • Monthly payment information • Collateral performance, which varies by vintage year and includes delinquency rates, loss severity rates and refinancing assumptions • Credit default swap indices Other inputs for ABS, CLOs, and RMBS: • Estimate of future principal prepayments, derived from the characteristics of the underlying structure • Prepayment speeds previously experienced at the interest rate levels projected for the collateral			• Independent broker quotes • Credit spreads beyond observable curve • Interest rates beyond observable curve Other inputs for less liquid securities or those that trade less actively, including subprime RMBS: • Estimated cash flows • Credit spreads, which include illiquidity premium • Constant prepayment rates • Constant default rates • Loss severity
Corporates
			• Benchmark yields and spreads • Reported trades, bids, offers of the same or similar securities • Issuer spreads and credit default swap curves Other inputs for investment grade privately placed securities that utilize internal matrix pricing : • Credit spreads for public securities of similar quality, maturity, and sector, adjusted for non-public nature			• Independent broker quotes • Credit spreads beyond observable curve • Interest rates beyond observable curve Other inputs for below investment grade privately placed securities and private bank loans: • Credit spreads for public securities of similar quality, maturity, and sector, adjusted for non-public nature
U.S Treasuries, Municipals, and Foreign government/government agencies
			• Benchmark yields and spreads • Issuer credit default swap curves • Political events in emerging market economies • Municipal Securities Rulemaking Board reported trades and material event notices • Issuer financial statements			• Credit spreads beyond observable curve • Interest rates beyond observable curve
Equity Securities
			• Quoted prices in markets that are not active			• For privately traded equity securities, internal discounted cash flow models utilizing earnings multiples or other cash flow assumptions that are not observable
Short-term Investments
			• Benchmark yields and spreads • Reported trades, bids, offers • Issuer spreads and credit default swap curves • Material event notices and new issue money market rates			• Independent broker quotes
Derivatives
Credit derivatives
			• Swap yield curve • Credit default swap curves			Not applicable
Foreign exchange derivatives
			• Swap yield curve • Currency spot and forward rates • Cross currency basis curves			• Independent broker quotes
Interest rate derivatives
			• Swap yield curve			• Independent broker quotes • Interest rate volatility

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			Index to Consolidated Financial Statements and Schedules
Table of Contents			Note 5 - Fair Value Measurements

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

Significant Unobservable Inputs for Level 3 - Securities

Assets accounted for at fair value on a recurring basis			Fair Value			Predominant Valuation Technique			Significant Unobservable Input			Minimum			Maximum			Weighted Average [1]			Impact of Increase in Input on Fair Value [2]
As of December 31, 2021
CLOs [3]			$	211		Discounted cash flows			Spread			234 bps			258 bps			257 bps			Decrease
CMBS [3]			$	192		Discounted cash flows			Spread (encompasses prepayment, default risk and loss severity)			203 bps			468 bps			266 bps			Decrease
Corporate [4]			$	1,532		Discounted cash flows			Spread			96 bps			1,227 bps			298 bps			Decrease
RMBS [3]			$	266		Discounted cash flows			Spread [6]			48 bps			229 bps			89 bps			Decrease
									Constant prepayment rate [6]			2%			16%			7%			Decrease [5]
									Constant default rate [6]			1%			6%			3%			Decrease
									Loss severity [6]			—%			100%			63%			Decrease
As of December 31, 2020
CLOs [3]			$	340		Discounted cash flows			Spread			304 bps			305 bps			304 bps			Decrease
CMBS [3]			$	20		Discounted cash flows			Spread (encompasses prepayment, default risk and loss severity)			255 bps			975 bps			688 bps			Decrease
Corporate [4]			$	749		Discounted cash flows			Spread			110 bps			692 bps			293 bps			Decrease
RMBS [3]			$	364		Discounted cash flows			Spread [6]			7 bps			937 bps			119 bps			Decrease
									Constant prepayment rate [6]			—%			10%			5%			Decrease [5]
									Constant default rate [6]			2%			6%			3%			Decrease
									Loss severity [6]			—%			100%			84%			Decrease

*[1]*The weighted average is determined based on the fair value of the securities.

*[2]*Conversely, the impact of a decrease in input would have the opposite impact to the fair value as that presented in the table.

*[3]*Excludes securities for which the Company bases fair value on broker quotations.

*[4]*Excludes securities for which the Company bases fair value on broker quotations; however, included are broker priced lower-rated private placement securities for which the Company receives spread and yield information to corroborate the fair value.

*[5]*Decrease for above market rate coupons and increase for below market rate coupons.

*[6]*Generally, a change in the assumption used for the constant default rate would have been accompanied by a directionally similar change in the assumption used for the loss severity and a directionally opposite change in the assumption used for constant prepayment rate and would have resulted in wider spreads.

As of December 31, 2021 and 2020, the fair values of the Company's level 3 derivatives were less than $1 for both periods.

The table above excludes certain securities for which fair values are predominately based on independent broker quotes. While the Company does not have access to the significant unobservable inputs that independent brokers may use in their pricing process, the Company believes brokers likely use inputs similar to those used by the Company and third-party pricing services to price similar instruments. As such, in their pricing models, brokers likely use estimated loss severity rates, prepayment rates, constant default rates and credit spreads. Therefore, similar to non-broker priced securities, increases in these inputs would generally cause fair values to decrease. For the year ended December 31, 2021, no significant adjustments were made by the Company to broker prices received.

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			Index to Consolidated Financial Statements and Schedules
Table of Contents			Note 5 - Fair Value Measurements

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

Contingent Consideration

The acquisition of Lattice Strategies LLC ("Lattice") on July 29, 2016 required the Company to make payments to former owners of Lattice of up to $60 contingent upon growth in ETP assets under management ("AUM") over a period of four years beginning on the date of acquisition. The contingent consideration was measured at fair value on a quarterly basis by projecting future eligible ETP AUM over the contingency period to estimate the amount of expected payout. The future expected payout had been discounted back to the valuation date using a risk-adjusted discount rate of 10.0%. The risk-adjusted discount rate is an internally generated and significant unobservable input to fair value.

In January 2020, we made a third payment of $10 after Lattice AUM reached $3.0 billion. Given the dramatic market declines and outflows in March, 2020, Lattice AUM declined to $2.3 billion as of March 30, 2020 and the Company reduced the

remaining contingent consideration liability to zero, recognizing an $11.9 before tax reduction in expense in first quarter 2020.

The earn out period ended on July 29, 2020 with no additional consideration payable.

For disclosure of contingent consideration related to the sale of Continental Europe Operations, refer to Note 22 - Business Dispositions.

LEVEL 3 ASSETS AND LIABILITIES MEASURED AT FAIR VALUE ON A RECURRING BASIS USING SIGNIFICANT UNOBSERVABLE INPUTS

The Company uses derivative instruments to manage the risk associated with certain assets and liabilities. However, the derivative instrument may not be classified within the same fair value hierarchy level as the associated asset or liability.

Fair Value Rollforwards for Financial Instruments Classified as Level 3 for the Year Ended December 31, 2021

									Total realized/unrealized gains (losses)
						Fair value as of January 1, 2021			Included in net income [1]			Included in OCI [2]			Purchases			Settlements			Sales			Transfers into Level 3 [3]			Transfers out of Level 3 [3]			Fair value as of December 31, 2021
Assets
Fixed Maturities, AFS
			ABS			$	—		$	—		$	—		$	42		$	—		$	(3)		$	—		$	(39)		$	—
			CLOs			360			—			(1)			471			(124)			—			—			(449)			257
			CMBS			77			—			1			166			(4)			(1)			5			(48)			196
			Corporate			881			14			(34)			828			(154)			(47)			172			(42)			1,618
			Foreign Govt./Govt. Agencies			6			—			—			5			—			(6)			—			—			5
			RMBS			381			—			(4)			369			(193)			(14)			—			(211)			328
Total Fixed Maturities, AFS						1,705			14			(38)			1,881			(475)			(71)			177			(789)			2,404
Equity Securities, at fair value						70			42			—			6			(53)			(1)			—			—			64
Fixed maturities, FVO [4]						—			(6)			—			160			6			—			—			—			160
Short-term investments						30			—			—			98			(48)			—			—			—			80
Total Assets						$	1,805		$	50		$	(38)		$	2,145		$	(570)		$	(72)		$	177		$	(789)		$	2,708

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			Index to Consolidated Financial Statements and Schedules
Table of Contents			Note 5 - Fair Value Measurements

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

Fair Value Rollforwards for Financial Instruments Classified as Level 3 for the Year Ended December 31, 2020

									Total realized/unrealized gains (losses)
						Fair value as of January 1, 2020			Included in net income [1]			Included in OCI [2]			Purchases			Settlements			Sales			Transfers into Level 3 [3]			Transfers out of Level 3 [3]			Fair value as of December 31, 2020
Assets
Fixed Maturities, AFS
			ABS			$	15		$	—		$	(1)		$	43		$	—		$	—		$	—		$	(57)		$	—
			CLOs			95			—			1			389			(43)			—			—			(82)			360
			CMBS			9			—			3			79			(5)			—			13			(22)			77
			Corporate			732			(31)			31			272			(143)			(36)			486			(430)			881
			Foreign Govt./Govt. Agencies			3			—			—			6			—			—			—			(3)			6
			Municipal			—			(3)			2			—			—			(6)			7			—			—
			RMBS			560			—			(11)			66			(182)			(7)			—			(45)			381
Total Fixed Maturities, AFS						1,414			(34)			25			855			(373)			(49)			506			(639)			1,705
Equity Securities, at fair value						73			(10)			—			6			—			—			1			—			70
Short-term investments						15			—			—			30			(15)			—			—			—			30
Total Assets						$	1,502		$	(44)		$	25		$	891		$	(388)		$	(49)		$	507		$	(639)		$	1,805
Liabilities
Derivatives, net [5]
			Equity			$	(15)		$	36		$	—		$	—		$	(21)		$	—		$	—		$	—		$	—
Total Derivatives, net [5]						(15)			36			—			—			(21)			—			—			—			—
Contingent Considerations						(22)			12			—			—			10			—			—			—			—
Total Liabilities						$	(37)		$	48		$	—		$	—		$	(11)		$	—		$	—		$	—		$	—

*[1]*Amounts in these columns are generally reported in net realized gains (losses). All amounts are before income taxes.

*[2]*All amounts are before income taxes.

*[3]*Transfers in and/or (out) of Level 3 are primarily attributable to the availability of market observable information and the re-evaluation of the observability of pricing inputs.

*[4]*Included within other investments on the Consolidated Balance Sheets.

*[5]*Derivative instruments are reported in this table on a net basis for asset (liability) positions and reported in the Consolidated Balance Sheets in other investments and other liabilities.

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			Index to Consolidated Financial Statements and Schedules
Table of Contents			Note 5 - Fair Value Measurements

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

Changes in Unrealized Gains (Losses) for Financial Instruments Classified as Level 3 Still Held at Year End

						December 31, 2021									December 31, 2020
						Changes in Unrealized Gain/(Loss) included in Net Income [1] [2]			Changes in Unrealized Gain/(Loss) included in OCI [3]						Changes in Unrealized Gain/(Loss) included in Net Income [1] [2]			Changes in Unrealized Gain/(Loss) included in OCI [3]
Assets
Fixed Maturities, AFS
			CLOs			$	—		$	(1)					$	—		$	1
			CMBS			—			1						—			4
			Corporate			—			(32)						(21)			24
			RMBS			—			(4)						—			(10)
Total Fixed Maturities, AFS						—			(36)						(21)			19
Equity Securities, at fair value						4			—						(9)			—
Fixed Maturities, FVO [4]						(6)			—						—			—
Total Assets						$	(2)		$	(36)					$	(30)		$	19
Liabilities
Contingent Consideration						$	—		$	—					$	12		$	—
Total Liabilities						$	—		$	—					$	12		$	—

*[1]*All amounts in these rows are reported in net gains (losses). All amounts are before income taxes.

*[2]*Amounts presented are for Level 3 only and therefore may not agree to other disclosures included herein.

*[3]*Changes in unrealized gain (loss) on fixed maturities, AFS are reported in changes in net unrealized gain on securities in the Consolidated Statements of Comprehensive Income.

*[4]*Included within other investments on the Consolidated Balance Sheets.

FAIR VALUE OPTION

The Company has elected the fair value option for certain investments in residual interests of securitizations in order to reflect changes in fair value in earnings. These instruments are included within other investments on the Consolidated Balance Sheets and changes in the fair value of these securities are reported in net realized gains and losses.

As of December 31, 2021, the fair value of assets using the fair value option was $160. As of December 31, 2020, the Company did not have any assets using the fair value option.

For the year ended December 31, 2021 realized losses related to the change in fair value of assets using the fair value option were $6. For the years ended December 31, 2020 and 2019, there were no realized gains (losses) related to the change in fair value of assets using the fair value option.

FINANCIAL INSTRUMENTS NOT CARRIED AT FAIR VALUE

Financial Assets and Liabilities Not Carried at Fair Value

			December 31, 2021												December 31, 2020
			Fair Value Hierarchy Level			Carrying Amount [1]			Fair Value						Fair Value Hierarchy Level			Carrying Amount [1]			Fair Value
Assets
Mortgage loans			Level 3			$	5,383		$	5,576					Level 3			$	4,493		$	4,792
Liabilities
Other policyholder funds and benefits payable			Level 3			$	687		$	689					Level 3			$	701		$	703
Senior notes [2]			Level 2			$	3,854		$	4,725					Level 2			$	3,262		$	4,363
Junior subordinated debentures [2]			Level 2			$	1,090		$	1,086					Level 2			$	1,090		$	1,107

[1] As of December 31, 2021 and December 31, 2020, carrying amount of mortgage loans is net of ACL of $29 and $38 respectively

[2] Included in long-term debt in the Consolidated Balance Sheets, except for any current maturities, which are included in short-term debt when applicable.

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			Index to Consolidated Financial Statements and Schedules
Table of Contents			Note 6 - Investments

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

6. INVESTMENTS

Net Investment Income

			For the years ended December 31,
(Before tax)			2021			2020			2019
Fixed maturities [1]			$	1,349		$	1,442		$	1,559
Equity securities			73			39			46
Mortgage loans			181			172			165
Limited partnerships and other alternative investments			732			222			232
Other investments [2]			58			42			32
Investment expenses			(80)			(71)			(83)
Total net investment income			$	2,313		$	1,846		$	1,951

*[1]*Includes net investment income on short-term investments.

*[2]*Primarily includes changes in fair value of certain equity fund investments and income from derivatives that qualify for hedge accounting and are used to hedge fixed maturities.

Net Realized Gains (Losses)

			For the years ended December 31,
(Before tax)			2021			2020			2019
Gross gains on sales of fixed maturities			$	319		$	255		$	234
Gross losses on sales of fixed maturities			(89)			(50)			(56)
Equity securities [1]
Net realized gains (losses) on sales of equity securities			81			(118)			78
Change in net unrealized gains (losses) of equity securities			146			(96)			176
Net realized and unrealized gains (losses) on equity securities			227			(214)			254
Net credit losses on fixed maturities, AFS [2]			4			(28)
Change in ACL on mortgage loans [3]			9			(19)
Intent-to-sell impairments			—			(5)			—
Net OTTI losses recognized in earnings									(3)
Valuation allowances on mortgage loans									1
Other, net [4]			39			47			(35)
Net realized gains (losses)			$	509		$	(14)		$	395

*[1]*The net unrealized gains on equity securities still held as of the end of the period and included in net realized gains (losses) were $155, $53, and $164 for the years ended December 31, 2021, 2020, and 2019, respectively.

*[2]*Due to the adoption of accounting guidance for credit losses on January 1, 2020, realized losses previously reported as OTTI are now presented as credit losses which are net of any recoveries. For further information refer to Note 1 - Basis of Presentation and Significant Accounting Policies.

*[3]*Represents the change in ACL recorded during the period following the adoption of accounting guidance for credit losses on January 1, 2020. For further information refer to Note 1 - Basis of Presentation and Significant Accounting Policies.

*[4]*Includes gains (losses) on non-qualifying derivatives for 2021, 2020, and 2019 of $12, $104, and $(24), respectively, gains (losses) from transactional foreign currency revaluation of $(1), $(1) and $(9), respectively, and a loss of $21 and $48, respectively, on the sale of the Continental Europe Operations for the years ended December 31, 2021 and 2020. For the year ended December 31, 2021, there was also a gain of $46 on the sale of the Company's previously owned interest in Talcott Resolution.

Proceeds from the sales of fixed maturities, AFS totaled $15.9 billion, $15.1 billion, and $14.4 billion for the years ended December 31, 2021, 2020, and 2019, respectively. Sales of AFS securities in 2021 were primarily a result of tactical changes to the portfolio driven by changing market conditions, in addition to duration and liquidity management.

Accrued Interest Receivable on Fixed Maturities, AFS and Mortgage Loans

As of December 31, 2021 and December 31, 2020, the Company reported accrued interest receivable related to fixed maturities, AFS of $299 and $327, respectively, and accrued interest receivable related to mortgage loans of $16 and $14, respectively. These amounts are recorded in other assets on the Consolidated Balance Sheets and are not included in the carrying value of the fixed maturities or mortgage loans. The

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			Index to Consolidated Financial Statements and Schedules
Table of Contents			Note 6 - Investments

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

Company does not include the current accrued interest receivable balance when estimating the ACL. The Company has a policy to write-off accrued interest receivable balances that are more than 90 days past due. Write-offs of accrued interest receivable are recorded as a credit loss component of net realized gains and losses.

Interest income on fixed maturities and mortgage loans is accrued unless it is past due over 90 days or management deems the interest uncollectible.

Recognition and Presentation of Intent-to-Sell Impairments and ACL on Fixed Maturities, AFS

The Company will record an "intent-to-sell impairment" as a reduction to the amortized cost of fixed maturities, AFS in an unrealized loss position if the Company intends to sell or it is more likely than not that the Company will be required to sell the fixed maturity before a recovery in value. A corresponding charge is recorded in net realized losses equal to the difference between the fair value on the impairment date and the amortized cost basis of the fixed maturity before recognizing the impairment.

When fixed maturities are in an unrealized loss position and the Company does not record an intent-to-sell impairment, the Company will record an ACL for the portion of the unrealized loss due to a credit loss. Any remaining unrealized loss on a fixed maturity after recording an ACL is the non-credit amount and is recorded in OCI. The ACL is the excess of the amortized cost over the greater of the Company's best estimate of the present value of expected future cash flows or the security's fair value. Cash flows are discounted at the effective yield that is used to record interest income. The ACL cannot exceed the unrealized loss and, therefore, it may fluctuate with changes in the fair value of the fixed maturity if the fair value is greater than the Company's best estimate of the present value of expected future cash flows. The initial ACL and any subsequent changes are recorded in net realized gains and losses. The ACL is written off against the amortized cost in the period in which all or a portion of the related fixed maturity is determined to be uncollectible.

Developing the Company’s best estimate of expected future cash flows is a quantitative and qualitative process that incorporates information received from third-party sources along with certain internal assumptions regarding the future performance. The Company's considerations include, but are not limited to, (a) changes in the financial condition of the issuer and/or the underlying collateral, (b) whether the issuer is current on contractually obligated interest and principal payments, (c) credit ratings, (d) payment structure of the security and (e) the extent to which the fair value has been less than the amortized cost of the security.

For non-structured securities, assumptions include, but are not limited to, economic and industry-specific trends and fundamentals, instrument-specific developments including changes in credit ratings, industry earnings multiples and the issuer’s ability to restructure, access capital markets, and execute asset sales.

For structured securities, assumptions include, but are not limited to, various performance indicators such as historical and projected default and recovery rates, credit ratings, current and projected delinquency rates, loan-to-value ratios ("LTVs"), average cumulative collateral loss rates that vary by vintage year, prepayment speeds, and property value declines. These assumptions require the use of significant management judgment and include the probability of issuer default and estimates regarding timing and amount of expected recoveries which may include estimating the underlying collateral value.

Prior to January 1, 2020, the Company recorded an OTTI loss on fixed maturities for which the Company did not expect to recover the entire amortized cost basis. For these securities, the excess of the amortized cost basis over its fair value was separated into the portion representing a credit OTTI, which was recorded in net realized losses, and the remaining non-credit amount, which was recorded in OCI. The Company’s best estimate of discounted expected future cash flows became the new cost basis and accreted prospectively into net investment income over the estimated remaining life of the security.

ACL on Fixed Maturities, AFS by Type
						For the years ended December 31,
						2021						2020
(Before tax)						Corporate						Total			Corporate			Municipal			Total
Balance as of beginning of period						$	23					$	23		$	—		$	—		$	—
Credit losses on fixed maturities where an allowance was not previously recorded						2						2			36			3			39
Reduction due to sales						(18)						(18)			(4)			(3)			(7)
Net increases (decreases) on fixed maturities where an allowance was previously recorded						(6)						(6)			(9)			—			(9)
Balance as of end of period						$	1					$	1		$	23		$	—		$	23

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			Index to Consolidated Financial Statements and Schedules
Table of Contents			Note 6 - Investments

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

Cumulative Credit Impairments on Fixed Maturities, AFS
(Before tax)			For the year ended December 31, 2019
Balance as of beginning of period			$	(19)
Additions for credit impairments recognized on [1]:
Fixed maturities not previously impaired			(3)
Reductions for credit impairments previously recognized on:
Fixed maturities that matured or were sold during the period			3
Balance as of end of period			$	(19)

*[1]*These additions are included in the net OTTI losses recognized in earnings in the Consolidated Statements of Operations.

Fixed Maturities, AFS

Fixed Maturities, AFS, by Type
			December 31, 2021																		December 31, 2020
			Amortized Cost			ACL			Gross Unrealized Gains			Gross Unrealized Losses			Fair Value						Amortized Cost			ACL			Gross Unrealized Gains			Gross Unrealized Losses			Fair Value
ABS			$	1,125		$	—		$	13		$	(3)		$	1,135					$	1,525		$	—		$	39		$	—		$	1,564
CLOs			3,019			—			8			(2)			3,025						2,780			—			7			(7)			2,780
CMBS			3,955			—			179			(15)			4,119						4,219			—			286			(21)			4,484
Corporate			17,744			(1)			1,038			(74)			18,707						18,401			(23)			1,926			(31)			20,273
Foreign govt./govt. agencies			883			—			33			(6)			910						842			—			77			—			919
Municipal			7,473			—			787			(3)			8,257						8,564			—			940			(1)			9,503
RMBS			3,610			—			60			(27)			3,643						3,966			—			144			(3)			4,107
U.S. Treasuries			2,979			—			86			(14)			3,051						1,264			—			141			—			1,405
Total fixed maturities, AFS			$	40,788		$	(1)		$	2,204		$	(144)		$	42,847					$	41,561		$	(23)		$	3,560		$	(63)		$	45,035

Fixed Maturities, AFS, by Contractual Maturity Year

			December 31, 2021									December 31, 2020
			Amortized Cost			Fair Value						Amortized Cost			Fair Value
One year or less			$	1,400		$	1,419					$	1,411		$	1,432
Over one year through five years			8,615			8,894						7,832			8,286
Over five years through ten years			8,303			8,633						7,622			8,354
Over ten years			10,761			11,979						12,206			14,028
Subtotal			29,079			30,925						29,071			32,100
Mortgage-backed and asset-backed securities			11,709			11,922						12,490			12,935
Total fixed maturities, AFS			$	40,788		$	42,847					$	41,561		$	45,035

Estimated maturities may differ from contractual maturities due to call or prepayment provisions. Due to the potential for variability in payment speeds (i.e. prepayments or extensions), mortgage-backed and asset-backed securities are not categorized by contractual maturity.

Concentration of Credit Risk

The Company aims to maintain a diversified investment portfolio including issuer, sector and geographic stratification, where applicable, and has established certain exposure limits, diversification standards and review procedures to mitigate credit risk. The Company had no investment exposure to any credit concentration risk of a single issuer greater than 10% of the

Company's stockholders' equity as of December 31, 2021 or December 31, 2020, other than the U.S. government and certain U.S. government agencies.

As of December 31, 2021, other than U.S. government and certain U.S. government agencies, the Company’s three largest exposures by issuer were the Government of Canada, Apple Inc., and the IBM Corporation each of which comprised less than 1% of total invested assets. As of December 31, 2020, other than U.S. government and certain U.S. government agencies, the Company’s three largest exposures by issuer were Apple Inc., the IBM Corporation, and the New York State Dormitory Authority each of which comprised less than 1% of total invested

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Table of Contents			Note 6 - Investments

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

assets. The Company’s three largest exposures by sector as of December 31, 2021 were the municipal sector, the financial services sector, and the CMBS sector which comprised approximately 14%, 8%, and 7%, respectively, of total invested assets. The Company’s three largest exposures by sector as of

December 31, 2020 were the municipal sector, the financial services sector, and CMBS sector which comprised approximately 17%, 9%, and 8%, respectively, of total invested assets.

Unrealized Losses on Fixed Maturities, AFS

Unrealized Loss Aging for Fixed Maturities, AFS by Type and Length of Time as of December 31, 2021
						Less Than 12 Months												12 Months or More												Total
						Fair Value			Unrealized Losses									Fair Value			Unrealized Losses									Fair Value			Unrealized Losses
ABS						$	396		$	(3)								$	—		$	—								$	396		$	(3)
CLOs						1,434			(2)									147			—									1,581			(2)
CMBS						594			(7)									82			(8)									676			(15)
Corporate						3,698			(65)									234			(9)									3,932			(74)
Foreign govt./govt. agencies						340			(5)									16			(1)									356			(6)
Municipal						301			(3)									12			—									313			(3)
RMBS						1,869			(23)									94			(4)									1,963			(27)
U.S. Treasuries						2,301			(13)									23			(1)									2,324			(14)
Total fixed maturities, AFS in an unrealized loss position						$	10,933		$	(121)								$	608		$	(23)								$	11,541		$	(144)

Unrealized Loss Aging for Fixed Maturities, AFS by Type and Length of Time as of December 31, 2020
						Less Than 12 Months												12 Months or More												Total
						Fair Value			Unrealized Losses									Fair Value			Unrealized Losses									Fair Value			Unrealized Losses
ABS						$	44		$	—								$	—		$	—								$	44		$	—
CLOs						758			(2)									715			(5)									1,473			(7)
CMBS						410			(17)									19			(4)									429			(21)
Corporate						466			(13)									212			(18)									678			(31)
Foreign govt./govt. agencies						24			—									—			—									24			—
Municipal						34			(1)									—			—									34			(1)
RMBS						461			(3)									21			—									482			(3)
U.S. Treasuries						39			—									—			—									39			—
Total fixed maturities, AFS in an unrealized loss position						$	2,236		$	(36)								$	967		$	(27)								$	3,203		$	(63)

As of December 31, 2021, fixed maturities, AFS in an unrealized loss position consisted of 1,500 instruments, primarily in the corporate sectors, most notably financial services and technology and communications, as well as RMBS, CMBS, and U.S. Treasuries which were depressed largely due to higher interest rates and/or wider credit spreads since the purchase date. As of December 31, 2021, 99% of these fixed maturities were depressed less than 20% of cost or amortized cost. The increase in gross unrealized losses during 2021 was primarily attributable to higher interest rates, partially offset by tighter credit spreads.

Most of the fixed maturities depressed for twelve months or more relate to the corporate and CMBS sectors which were primarily depressed because current market spreads are wider than at the respective purchase dates. Additionally, certain corporate fixed maturities were also depressed because of their variable-rate coupons and long-dated maturities. The Company neither has an intention to sell nor does it expect to be required to sell the fixed maturities outlined in the preceding discussion. The decision to record credit losses on fixed maturities, AFS in the form of an ACL requires us to make qualitative and quantitative estimates of expected future cash flows.

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			Index to Consolidated Financial Statements and Schedules
Table of Contents			Note 6 - Investments

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

Mortgage Loans

ACL on Mortgage Loans

The Company reviews mortgage loans on a quarterly basis to estimate the ACL with changes in the ACL recorded in net realized gains and losses. Apart from an ACL recorded on individual mortgage loans where the borrower is experiencing financial difficulties, the Company records an ACL on the pool of mortgage loans based on lifetime expected credit losses. The Company utilizes a third-party forecasting model to estimate lifetime expected credit losses at a loan level under multiple economic scenarios. The scenarios use macroeconomic data provided by an internationally recognized economics firm that generates forecasts of varying economic factors such as GDP growth, unemployment and interest rates. The economic scenarios are projected over 10 years. The first two to four years of the 10-year period assume a specific modeled economic scenario (including moderate upside, moderate recession and severe recession scenarios) and then revert to historical long-term assumptions over the remaining period. Using these economic scenarios, the forecasting model projects property-specific operating income and capitalization rates used to estimate the value of a future operating income stream. The operating income and the property valuations derived from capitalization rates are compared to loan payment and principal amounts to create debt service coverage ratios ("DSCRs") and LTVs over the forecast period. The model overlays historical data about mortgage loan performance based on DSCRs and LTVs and projects the probability of default, amount of loss given a default and resulting expected loss through maturity for each loan under each economic scenario. Economic scenarios are probability-weighted based on a statistical analysis of the forecasted economic factors and qualitative analysis. The Company records the change in the ACL on mortgage loans based on the weighted-average expected credit losses across the selected economic scenarios.

When a borrower is experiencing financial difficulty, including when foreclosure is probable, the Company measures an ACL on individual mortgage loans. The ACL is established for any shortfall between the amortized cost of the loan and the fair value of the collateral less costs to sell. Estimates of collectibility from an individual borrower require the use of significant management judgment and include the probability and timing of borrower default and loss severity estimates. In addition, cash flow projections may change based upon new information about the borrower's ability to pay and/or the value of underlying collateral such as changes in projected property value estimates. As of December 31, 2021, the Company did not have any mortgage loans for which an ACL was established on an individual basis.

There were no mortgage loans held-for-sale as of December 31, 2021 or December 31, 2020. In addition, as of December 31, 2021 and December 31, 2020, the Company had no mortgage loans that have had extensions or restructurings other than what is allowable under the original terms of the contract.

Prior to January 1, 2020, for mortgage loans that were deemed impaired, a valuation allowance was established for the difference between the carrying amount and estimated fair value, which was generally the Company's share of the fair value of the collateral. A valuation allowance also may have been recorded

for an individual loan or for a group of loans that had an LTV ratio of 90% or greater, a low DSCR or other lower credit quality characteristics. Changes in valuation allowances were recognized as net realized losses.

ACL on Mortgage Loans
			For the years ended December 31,
			2021			2020			2019
ACL as of beginning of period			$	38		$	—		$	1
Cumulative effect of accounting changes [1]						19
Adjusted beginning ACL			38			19			1
Current period provision (release)			(9)			19			(1)
ACL as of December 31,			$	29		$	38		$	—

*[1]*Represents the adjustment to the ACL recorded on adoption of accounting guidance for credit losses on January 1, 2020. For further information refer to Note 1 - Basis of Presentation and Significant Accounting Policies.

The decrease in the allowance for the year ended December 31, 2021, is the result of improved economic scenarios, including improved GDP growth and unemployment, and higher property valuations as compared to the prior periods, partially offset by an increase driven by net additions of new loans. We continue to monitor the impact on our mortgage loan portfolio from borrower behavior in response to the economic stress caused by the pandemic. Borrowers with lower LTVs have an incentive to continue to make payments of principal and/or interest in order to preserve the equity they have in the underlying commercial real estate properties. During 2020, the Company increased the estimate of the ACL in response to significant economic stress experienced as a result of the COVID-19 pandemic.

The weighted-average LTV ratio of the Company’s mortgage loan portfolio was 51% as of December 31, 2021, while the weighted-average LTV ratio at origination of these loans was 60%. LTV ratios compare the loan amount to the value of the underlying property collateralizing the loan with property values based on appraisals updated no less than annually. Factors considered in estimating property values include, among other things, actual and expected property cash flows, geographic market data and the ratio of the property's net operating income to its value. DSCR compares a property’s net operating income to the borrower’s principal and interest payments and are updated no less than annually through reviews of underlying properties.

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			Index to Consolidated Financial Statements and Schedules
Table of Contents			Note 6 - Investments

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

Mortgage Loans LTV & DSCR by Origination Year as of December 31, 2021
			2021						2020						2019						2018						2017						2016 & Prior						Total
Loan-to-value			Amortized Cost			Avg. DSCR			Amortized Cost			Avg. DSCR			Amortized Cost			Avg. DSCR			Amortized Cost			Avg. DSCR			Amortized Cost			Avg. DSCR			Amortized Cost			Avg. DSCR			Amortized Cost [1]			Avg. DSCR
65% - 80%			$	7		2.37x			$	50		2.63x			$	91		1.57x			$	100		1.00x			$	45		1.37x			$	97		1.80x			$	390		1.61x
Less than 65%			1,481			2.70x			645			2.78x			722			2.78x			472			2.23x			417			1.91x			1,285			2.45x			5,022			2.55x
Total mortgage loans			$	1,488		2.70x			$	695		2.77x			$	813		2.64x			$	572		2.02x			$	462		1.86x			$	1,382		2.41x			$	5,412		2.48x

[1] Amortized cost of mortgage loans excludes ACL of $29.

Mortgage Loans LTV & DSCR by Origination Year as of December 31, 2020
			2020						2019						2018						2017						2016						2015 & Prior						Total
Loan-to-value			Amortized Cost			Avg. DSCR			Amortized Cost			Avg. DSCR			Amortized Cost			Avg. DSCR			Amortized Cost			Avg. DSCR			Amortized Cost			Avg. DSCR			Amortized Cost			Avg. DSCR			Amortized Cost [1]			Avg. DSCR
65% - 80%			$	28		1.62x			$	243		1.58x			$	212		1.33x			$	45		2.02x			$	51		1.92x			$	115		1.74x			$	694		1.59x
Less than 65%			659			2.56x			676			2.85x			410			2.25x			446			1.89x			235			2.99x			1,411			3.01x			3,837			2.69x
Total mortgage loans			$	687		2.52x			$	919		2.51x			$	622		1.94x			$	491		1.90x			$	286		2.80x			$	1,526		2.92x			$	4,531		2.52x

[1] Amortized cost of mortgage loans excludes ACL of $38.

Mortgage Loans by Region
			December 31, 2021									December 31, 2020
			Amortized Cost			Percent of Total						Amortized Cost			Percent of Total
East North Central			$	284		5.2		%				$	290		6.4		%
Middle Atlantic			303			5.6		%				291			6.4		%
Mountain			450			8.3		%				254			5.6		%
New England			393			7.3		%				397			8.8		%
Pacific			1,245			23.0		%				1,001			22.1		%
South Atlantic			1,556			28.8		%				1,038			22.9		%
West North Central			85			1.6		%				44			1.0		%
West South Central			424			7.8		%				433			9.5		%
Other [1]			672			12.4		%				783			17.3		%
Total mortgage loans			$	5,412		100.0		%				$	4,531		100.0		%
ACL			(29)									(38)
Total mortgage loans, net of ACL			$	5,383								$	4,493

*[1]*Primarily represents loans collateralized by multiple properties in various regions.

Mortgage Loans by Property Type
			December 31, 2021									December 31, 2020
			Amortized Cost			Percent of Total						Amortized Cost			Percent of Total
Commercial
Industrial			$	1,931		35.7		%				$	1,339		29.5		%
Multifamily			1,833			33.9		%				1,498			33.1		%
Office			627			11.6		%				774			17.1		%
Retail [1]			951			17.6		%				788			17.4		%
Single Family			30			0.5		%				92			2.0		%
Other			40			0.7		%				40			0.9		%
Total mortgage loans			$	5,412		100.0		%				$	4,531		100.0		%
ACL			(29)									(38)
Total mortgage loans, net of ACL			$	5,383								$	4,493

[1] Primarily comprised of grocery-anchored retail centers, with no exposure to regional shopping malls.

Past-Due Mortgage Loans

Mortgage loans are considered past due if a payment of principal or interest is not received according to the contractual terms of the loan agreement, which typically includes a grace period. As of December 31, 2021 and December 31, 2020, the Company held no mortgage loans considered past due.

Mortgage Servicing

The Company originates, sells, and services commercial mortgage loans on behalf of third parties and recognizes servicing fee income over the period that services are performed. As of December 31, 2021, under this program, the Company serviced mortgage loans with a total outstanding principal of $8.2 billion, of which $3.9 billion was serviced on

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			Index to Consolidated Financial Statements and Schedules
Table of Contents			Note 6 - Investments

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

behalf of third parties and $4.3 billion was retained and reported in total investments on the Company's Consolidated Balance Sheets. As of December 31, 2020, the Company serviced mortgage loans with a total outstanding principal balance of $6.9 billion, of which $3.7 billion was serviced on behalf of third parties and $3.2 billion was retained and reported in total investments on the Company's Consolidated Balance Sheets. Servicing rights are carried at the lower of cost or fair value and were $0 as of December 31, 2021 and December 31, 2020, because servicing fees were market-level fees at origination and remain adequate to compensate the Company for servicing the loans.

Variable Interest Entities

The Company is engaged with various special purpose entities and other entities that are deemed to be VIEs primarily as an investor through normal investment activities but also as an investment manager.

A VIE is an entity that either has investors that lack certain essential characteristics of a controlling financial interest, such as simple majority kick-out rights, or lacks sufficient funds to finance its own activities without financial support provided by other entities. The Company performs ongoing qualitative assessments of its VIEs to determine whether the Company has a controlling financial interest in the VIE and therefore is the primary beneficiary. The Company is deemed to have a controlling financial interest when it has both the ability to direct the activities that most significantly impact the economic performance of the VIE and the obligation to absorb losses or right to receive benefits from the VIE that could potentially be significant to the VIE. Based on the Company’s assessment, if it determines it is the primary beneficiary, the Company consolidates the VIE in the Company’s Consolidated Financial Statements.

Consolidated VIEs

As of December 31, 2021 and 2020, the Company did not hold any securities for which it is the primary beneficiary.

Non-Consolidated VIEs

The Company, through normal investment activities, makes passive investments in limited partnerships and other alternative investments. For these non-consolidated VIEs, the Company has determined it is not the primary beneficiary as it has no ability to direct activities that could significantly affect the economic performance of the investments. The Company’s maximum exposure to loss as of December 31, 2021 and 2020 is limited to the total carrying value of $1.9 billion and $1.3 billion, respectively, which are a portion of the investments in limited partnerships and other alternative investments in the Company's Consolidated Balance Sheets that are primarily recorded using the equity method of accounting. As of December 31, 2021 and 2020, the Company has outstanding commitments totaling $1.4 billion and $768, respectively, whereby the Company is committed to fund these investments and may be called by the partnership during the commitment period to fund the purchase of new investments and partnership expenses. These investments are generally of a passive nature in that the Company does not take an active role in management.

In addition, the Company makes passive investments in structured securities issued by VIEs for which the Company is not the manager. These investments are included in ABS, CLOs, CMBS, and RMBS and are reported in fixed maturities, AFS, and, for assets where the Company has elected the fair value option, in other investments. The Company has not provided financial or other support with respect to these investments other than its original investment. For these investments, the Company determined it is not the primary beneficiary due to the relative size of the Company’s investment in comparison to the principal amount of the structured securities issued by the VIEs, the Company’s inability to direct the activities that most significantly impact the economic performance of the VIEs, and, where applicable, the level of credit subordination which reduces the Company’s obligation to absorb losses or right to receive benefits. The Company’s maximum exposure to loss on these investments is limited to the amount of the Company’s investment.

Securities Lending, Reverse Repurchase Agreements, Other Collateral Transactions and Restricted Investments

Securities Lending

Under a securities lending program, the Company lends certain fixed maturities within the corporate, foreign government/government agencies, and municipal sectors as well as equity securities to qualifying third-party borrowers in return for collateral in the form of cash or securities. For domestic and non-domestic loaned securities, respectively, borrowers provide collateral of 102% and 105% of the fair value of the securities lent at the time of the loan. Borrowers will return the securities to the Company for cash or securities collateral at maturity dates generally of 90 days or less. Security collateral on deposit from counterparties in connection with securities lending transactions may not be sold or re-pledged, except in the event of default by the counterparty, and is not reflected on the Company’s Consolidated Balance Sheets. Additional collateral is obtained if the fair value of the collateral falls below 100% of the fair value of the loaned securities. The agreements are continuous and do not have stated maturity dates and provide the counterparty the right to sell or re-pledge the securities loaned. If cash, rather than securities, is received as collateral, the cash is typically invested in short-term investments or fixed maturities and is reported as an asset on the Company's Consolidated Balance Sheets. Income associated with securities lending transactions is reported as a component of net investment income in the Company’s Consolidated Statements of Operations. While the Company had securities on loan as part of a securities lending program during 2020, as of December 31, 2021 and December 31, 2020, the Company did not have any securities on loan as part of a securities lending program.

Reverse Repurchase Agreements

From time to time, the Company enters into reverse repurchase agreements where the Company purchases securities and simultaneously agrees to resell the same or substantially the same securities. The maturity of these transactions is generally within one year. The agreements require additional collateral to

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			Index to Consolidated Financial Statements and Schedules
Table of Contents			Note 6 - Investments

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

be transferred to the Company under specified conditions and the Company has the right to sell or re-pledge the securities received. The Company accounts for reverse repurchase agreements as collateralized financing. As of December 31, 2021 and December 31, 2020, the Company reported $30 and $30, respectively, within short-term investments on the Consolidated Balance Sheets representing a receivable for the amount of cash transferred to purchase the securities.

Other Collateral Transactions

As of December 31, 2021 and December 31, 2020, the Company pledged collateral of $9 and $34, respectively, of U.S. government securities or cash primarily related to certain bank loan participations committed to through a limited partnership agreement. Amounts also include collateral related to letters of credit.

For disclosure of collateral in support of derivative transactions, refer to the Derivative Collateral Arrangements section in Note 7 - Derivatives.

Other Restricted Investments

The Company is required by law to deposit securities with government agencies in certain states in which it conducts business. In addition, the Company is required to hold fixed maturities and short-term investments in trust for the benefit of syndicate policyholders, hold fixed maturities in a Lloyd's of London ("Lloyd's") trust account to provide a portion of the required capital, and maintain other investments primarily consisting of overseas deposits in various countries with Lloyd's to support underwriting activities in those countries. Lloyd's is an insurance market-place operating worldwide. Lloyd's does not underwrite risks. The Company accepts risks as the sole member of Lloyd's Syndicate 1221 ("Lloyd's Syndicate").

The following table presents the components of the Company’s exposure to other restricted investments.

			December 31, 2021			December 31, 2020
			Fair Value			Fair Value
Securities on deposit with government agencies			$	2,376		$	2,600
Fixed maturities in trust for benefit of syndicate policyholders			712			661
Short-term investments in trust for benefit of syndicate policyholders			7			26
Fixed maturities in Lloyd's's trust account			160			175
Other investments			65			54
Total Other Restricted Investments			$	3,320		$	3,516

Equity Method Investments

The majority of the Company's investments in limited partnerships and other alternative investments, including hedge funds, real estate funds, and private equity funds (collectively, “limited partnerships”), are accounted for under the equity method of accounting. The remainder of investments in limited partnerships and other alternative investments consists of investments in insurer-owned life insurance accounted for at cash surrender value. Prior to June 30, 2021, the Company also had a retained 9.7% investment in Hopmeadow Holdings LP, the legal entity that acquired Talcott Resolution in May 2018

(collectively referred to as "Talcott Resolution"), which was accounted for under the equity method of accounting and was reported in other assets on the Company's Consolidated Balance Sheets. On June 30, 2021, the Company sold its 9.7% ownership interest in Talcott Resolution and received a total $217 in connection with the sale, resulting in a realized gain on sale of $46 before tax during 2021.

The Company recognized total equity method income of $630, $244, and $267 for the years ended December 31, 2021, 2020 and 2019, respectively. Equity method income is reported in net investment income, except amounts related to strategic investments classified in other assets which are reported in other revenues. For investments accounted for under the equity method, the Company’s maximum exposure to loss as of December 31, 2021 is limited to the total carrying value of $2.9 billion. In addition, the Company has outstanding commitments totaling $1.6 billion to fund limited partnership investments as of December 31, 2021. The Company’s investments accounted for under the equity method are generally of a passive nature in that the Company does not take an active role in the management.

In 2021, aggregate investment income from investments accounted for under the equity method exceeded 10% of the Company’s before tax consolidated net income (loss). Accordingly, the Company is disclosing aggregated, summarized financial data for the Company’s investments accounted for under the equity method. This aggregated, summarized financial data does not represent the Company’s proportionate share of investees' assets or earnings. Aggregate total assets of the investees totaled $249.8 billion and $339.6 billion as of December 31, 2021 and 2020, respectively. Aggregate total liabilities of the investees totaled $41.0 billion and $181.5 billion as of December 31, 2021 and 2020, respectively. Aggregate net investment income of the investees totaled $2.1 billion, $954, and $618 for the periods ended December 31, 2021, 2020 and 2019, respectively. Aggregate net income excluding net investment income of the investees totaled $46.7 billion, $7.4 billion and $13.4 billion for the periods ended December 31, 2021, 2020 and 2019, respectively. As of, and for the period ended, December 31, 2021, the aggregated summarized financial data reflects the latest available financial information.

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			Index to Consolidated Financial Statements and Schedules
Table of Contents			Note 7 - Derivatives

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

7. DERIVATIVES

The Company utilizes a variety of OTC, OTC-cleared and exchange traded derivative instruments as a part of its overall risk management strategy as well as to enter into replication transactions or income generation covered call transactions. Derivative instruments are used to manage risk associated with interest rate, equity market, credit spread, issuer default, price, and currency exchange rate or volatility. Replication transactions are used as an economical means to synthetically replicate the characteristics and performance of assets that are permissible investments under the Company’s investment policies.

STRATEGIES THAT QUALIFY FOR HEDGE ACCOUNTING

Some of the Company's derivatives satisfy hedge accounting requirements as outlined in Note 1 - Basis of Presentation and Significant Accounting Policies. Typically, these hedging instruments include interest rate swaps and, to a lesser extent, foreign currency swaps where the terms or expected cash flows of the hedged item closely match the terms of the swap. The interest rate swaps are typically used to manage interest rate duration of certain fixed maturity securities or debt instruments issued.

Cash Flow Hedges

Interest rate swaps are predominantly used to manage portfolio duration and better match cash receipts from assets with cash disbursements required to fund liabilities. These derivatives primarily convert interest receipts on variable-rate fixed maturity securities to fixed rates. The Company has also entered into interest rate swaps to convert the variable interest payments on 3 month LIBOR + 2.125% junior subordinated debt to fixed interest payments. For further information, see the Junior Subordinated Debentures section within Note 14 - Debt.

Foreign currency swaps are used to convert foreign currency-denominated cash flows related to certain investment receipts to U.S. dollars in order to reduce cash flow fluctuations due to changes in currency rates.

The Company also previously entered into forward starting swap agreements to hedge the interest rate exposure related to the future purchase of fixed-rate securities, primarily to hedge interest rate risk inherent in the assumptions used to price certain group benefits liabilities.

NON-QUALIFYING STRATEGIES

Derivative relationships that do not qualify for hedge accounting (“non-qualifying strategies”) primarily include hedges of interest rate, foreign currency and equity risk of certain fixed maturities and equities. In addition, hedging and replication strategies that utilize credit default swaps do not qualify for hedge accounting. The non-qualifying strategies include:

Credit Contracts

Credit default swaps are used to purchase credit protection on an individual entity or referenced index to economically hedge against default risk and credit-related changes in the value of

fixed maturity securities. Credit default swaps are also used to assume credit risk related to an individual entity or referenced index as a part of replication transactions. These contracts require the Company to pay or receive a periodic fee in exchange for compensation from the counterparty or the Company should the referenced security issuers experience a credit event, as defined in the contract. The Company also enters into credit default swaps to terminate existing credit default swaps, thereby offsetting the changes in value of the original swap going forward.

Interest Rate Swaps, Swaptions and Futures

The Company uses interest rate swaps and futures to manage interest rate duration between assets and liabilities. In addition, the Company enters into interest rate swaps to terminate existing swaps, thereby offsetting the changes in value of the original swap going forward. As of December 31, 2021 and December 31, 2020, the notional amount of interest rate swaps in offsetting relationships was $7.2 billion and $7.6 billion, respectively.

Foreign Currency Swaps and Forwards

The Company enters into foreign currency swaps to convert the foreign currency exposures of certain foreign currency-denominated fixed maturity investments to U.S. dollars.

Equity Index Options

The Company has previously entered into equity index options to hedge the impact of a decline in the equity markets on the investment portfolio. The Company has also entered into covered call options on equity securities to generate additional return.

DERIVATIVE BALANCE SHEET CLASSIFICATION

For reporting purposes, the Company has elected to offset within assets or liabilities based upon the net of the fair value amounts, income accruals, and related cash collateral receivables and payables of OTC derivative instruments executed in a legal entity and with the same counterparty under a master netting agreement, which provides the Company with the legal right of offset. The following fair value amounts do not include income accruals or related cash collateral receivables and payables, which are netted with derivative fair value amounts to determine balance sheet presentation. The Company’s derivative instruments are held for risk management purposes, unless otherwise noted in the following table. The notional amount of derivative contracts represents the basis upon which pay or receive amounts are calculated and is presented in the table to quantify the volume of the Company’s derivative activity. Notional amounts are not necessarily reflective of credit risk.

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			Index to Consolidated Financial Statements and Schedules
Table of Contents			Note 7 - Derivatives

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

Derivative Balance Sheet Presentation

			Net Derivatives												Asset Derivatives						Liability Derivatives
			Notional Amount						Fair Value						Fair Value						Fair Value
Hedge Designation/ Derivative Type			Dec 31, 2021			Dec 31, 2020			Dec 31, 2021			Dec 31, 2020			Dec 31, 2021			Dec 31, 2020			Dec 31, 2021			Dec 31, 2020
Cash flow hedges
Interest rate swaps			$	2,340		$	2,340		$	—		$	—		$	—		$	—		$	—		$	—
Foreign currency swaps			437			286			6			(13)			11			3			(5)			(16)
Total cash flow hedges			2,777			2,626			6			(13)			11			3			(5)			(16)
Non-qualifying strategies
Interest rate contracts
Interest rate swaps and futures			7,567			8,335			(46)			(69)			3			4			(49)			(73)
Foreign exchange contracts
Foreign currency swaps and forwards			558			269			—			—			—			—			—			—
Credit contracts
Credit derivatives that purchase credit protection			112			6			(2)			—			—			—			(2)			—
Credit derivatives that assume credit risk [1]			—			675			—			21			—			21			—			—
Credit derivatives in offsetting positions			210			218			—			—			3			5			(3)			(5)
Total non-qualifying strategies			8,447			9,503			(48)			(48)			6			30			(54)			(78)
Total cash flow hedges and non-qualifying strategies			$	11,224		$	12,129		$	(42)		$	(61)		$	17		$	33		$	(59)		$	(94)
Balance Sheet Location
Fixed maturities, available-for-sale			$	413		$	269		$	—		$	—		$	—		$	—		$	—		$	—
Other investments			1,452			9,585			7			23			10			25			(3)			(2)
Other liabilities			9,359			2,275			(49)			(84)			7			8			(56)			(92)
Total derivatives			$	11,224		$	12,129		$	(42)		$	(61)		$	17		$	33		$	(59)		$	(94)

*[1]*The derivative instruments related to this strategy are held for other investment purposes.

Offsetting of Derivative Assets/Liabilities

The following tables present the gross fair value amounts, the amounts offset, and net position of derivative instruments eligible for offset in the Company's Consolidated Balance Sheets. Amounts offset include fair value amounts, income accruals and related cash collateral receivables and payables associated with derivative instruments that are traded under a common master netting agreement, as described in the preceding discussion. Also included in the tables are financial collateral receivables and payables, which are contractually permitted to be offset upon an event of default, although are disallowed for offsetting under U.S. GAAP.

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			Index to Consolidated Financial Statements and Schedules
Table of Contents			Note 7 - Derivatives

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

Offsetting Derivative Assets and Liabilities

			(i)			(ii)			(iii) = (i) - (ii)						(iv)			(v) = (iii) - (iv)
									Net Amounts Presented in the Statement of Financial Position						Collateral Disallowed for Offset in the Statement of Financial Position
			Gross Amounts of Recognized Assets (Liabilities)			Gross Amounts Offset in the Statement of Financial Position			Derivative Assets [1] (Liabilities) [2]			Accrued Interest and Cash Collateral (Received) [3] Pledged [2]			Financial Collateral (Received) Pledged [4]			Net Amount
As of December 31, 2021
Other investments			$	17		$	13		$	7		$	(3)		$	4		$	—
Other liabilities			$	(59)		$	(10)		$	(49)		$	—		$	(47)		$	(2)
As of December 31, 2020
Other investments			$	33		$	31		$	23		$	(21)		$	1		$	1
Other liabilities			$	(94)		$	(6)		$	(84)		$	(4)		$	(83)		$	(5)

*[1]*Included in other investments in the Company's Consolidated Balance Sheets.

*[2]*Included in other liabilities in the Company's Consolidated Balance Sheets and is limited to the net derivative payable associated with each counterparty.

*[3]*Included in other investments in the Company's Consolidated Balance Sheets and is limited to the net derivative receivable associated with each counterparty.

*[4]*Excludes collateral associated with exchange-traded derivative instruments.

CASH FLOW HEDGES

For derivative instruments that are designated and qualify as cash flow hedges, the gain or loss on the derivative is reported as a component of OCI and reclassified into earnings in the

same period or periods during which the hedged transaction affects earnings. All components of each derivative’s gain or loss were included in the assessment of hedge effectiveness.

Gain (Loss) Recognized in OCI
			Year Ended December 31,
			2021			2020			2019
Interest rate swaps			$	4		$	38		$	18
Foreign currency swaps			24			(8)			8
Total			$	28		$	30		$	26

Gain (Loss) Reclassified from AOCI into Income
			Year Ended December 31,
			2021												2020												2019
			Net Realized Gain/(Loss)			Net Investment Income			Interest Expense						Net Realized Gain/(Loss)			Net Investment Income			Interest Expense						Net Realized Gain/(Loss)			Net Investment Income			Interest Expense
Interest rate swaps			$	—		$	41		$	(10)					$	—		$	29		$	(7)					$	2		$	4		$	1
Foreign currency swaps			—			5			—						(1)			5			—						—			3			—
Total			$	—		$	46		$	(10)					$	(1)		$	34		$	(7)					$	2		$	7		$	1
Total amounts presented on the Consolidated Statement of Operations			$	509		$	2,313		$	234					$	(14)		$	1,846		$	236					$	395		$	1,951		$	259

As of December 31, 2021, the before tax deferred net gains on derivative instruments recorded in AOCI that are expected to be reclassified to earnings during the next twelve months are $25. This expectation is based on the anticipated interest payments on hedged investments in fixed maturity securities and long-term debt that will occur over the next twelve months. At that time, the Company will recognize the deferred net gains (losses) as an

adjustment to net investment income or interest expense, as applicable, over the term of the hedged instrument cash flows.

During the years ended December 31, 2021, 2020, and 2019, the Company had no net reclassifications from AOCI to earnings resulting from the discontinuance of cash-flow hedges due to forecasted transactions that were no longer probable of occurring.

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			Index to Consolidated Financial Statements and Schedules
Table of Contents			Note 7 - Derivatives

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

NON-QUALIFYING STRATEGIES

For non-qualifying strategies, including embedded derivatives that are required to be bifurcated from their host contracts and

accounted for as derivatives, the gain or loss on the derivative is recognized currently in earnings within net realized gains (losses).

Non-Qualifying Strategies Recognized within Net Realized Gains (Losses)

			For the Year Ended December 31,
			2021			2020			2019
Interest rate contracts
Interest rate swaps, swaptions and futures			$	3		$	21		$	(35)
Credit contracts
Credit derivatives that purchase credit protection			—			2			(5)
Credit derivatives that assume credit risk			7			2			32
Equity contracts
Equity options			—			76			(17)
Foreign exchange contracts
Foreign currency swaps and forwards			2			3			1
Total			$	12		$	104		$	(24)

Credit Risk Assumed through Credit Derivatives

The Company enters into credit default swaps that assume credit risk of a single entity or referenced index in order to synthetically replicate investment transactions that are permissible under the Company's investment policies. The Company will receive periodic payments based on an agreed upon rate and notional amount and will only make a payment if there is a credit event. A credit event payment will typically be equal to the notional value of the swap contract less the value of the referenced security issuer’s debt obligation after the

occurrence of the credit event. A credit event is generally defined as a default on contractually obligated interest or principal payments or bankruptcy of the referenced entity. The credit default swaps in which the Company assumes credit risk primarily reference investment grade single corporate issuers and baskets, which include standard diversified portfolios of corporate and CMBS issuers. The diversified portfolios of corporate issuers are established within sector concentration limits and may be divided into tranches that possess different credit ratings.

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			Index to Consolidated Financial Statements and Schedules
Table of Contents			Note 7 - Derivatives

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

Credit Risk Assumed Derivatives by Type

															Underlying Referenced Credit Obligation(s) [1]
			Notional Amount [2]			Fair Value			Weighted Average Years to Maturity						Type			Average Credit Rating			Offsetting Notional Amount [3]			Offsetting Fair Value [3]
As of December 31, 2021
Basket credit default swaps [4]
Investment grade risk exposure			$	101		$	—		6 years						CMBS Credit			AAA			$	101		$	—
Below investment grade risk exposure			4			(2)			Less than 1 year						CMBS Credit			CCC			4			2
Total			$	105		$	(2)														$	105		$	2
As of December 31, 2020
Single name credit default swaps
Investment grade risk exposure			$	175		$	9		5 years						Corporate Credit			A-			$	—		$	—
Basket credit default swaps [4]
Investment grade risk exposure			500			12			5 years						Corporate Credit			BBB+			—			—
Investment grade risk exposure			100			1			8 years						CMBS Credit			AAA			100			(1)
Below investment grade risk exposure			9			(4)			Less than 1 year						CMBS Credit			CCC+			9			4
Total			$	784		$	18														$	109		$	3

*[1]*The average credit ratings are based on availability and are generally the midpoint of the available ratings among Moody’s, S&P, and Fitch. If no rating is available from a rating agency, then an internally developed rating is used.

*[2]*Notional amount is equal to the maximum potential future loss amount. These derivatives are governed by agreements and applicable law which include collateral posting requirements. There is no additional specific collateral related to these contracts or recourse provisions included in the contracts to offset losses.

*[3]*The Company has entered into offsetting credit default swaps to terminate certain existing credit default swaps, thereby offsetting the future changes in value of, or losses paid related to, the original swap.

*[4]*Comprised of swaps of standard market indices of diversified portfolios of corporate and CMBS issuers referenced through credit default swaps. These swaps are subsequently valued based upon the observable standard market index.

DERIVATIVE COLLATERAL ARRANGEMENTS

The Company enters into various collateral arrangements in connection with its derivative instruments, which require both the pledging and accepting of collateral. As of December 31, 2021 and 2020, the Company has pledged cash collateral associated with derivative instruments of $2 and $0, respectively. In general, collateral receivable is recorded in other assets or other liabilities on the Company's Consolidated Balance Sheets as determined by the Company's election to offset on the balance sheet. As of December 31, 2021 and 2020, the Company pledged securities collateral associated with derivative instruments with a fair value of $48 and $90, respectively, which have been included in fixed maturities on the Consolidated Balance Sheets. The counterparties have the right to sell or re-pledge these securities.

In addition, as of December 31, 2021 and 2020 , the Company has pledged initial margin of cash related to OTC-cleared and exchange traded derivatives with a fair value of $12 and $21, respectively, which is recorded in other investments or other assets on the Company's Consolidated Balance Sheets. As of

December 31, 2021 and 2020, the Company has pledged initial margin of securities related to OTC-cleared and exchange traded derivatives with a fair value of $82 and $62, respectively, which are included within fixed maturities on the Company's Consolidated Balance Sheets.

As of December 31, 2021 and 2020, the Company accepted cash collateral associated with derivative instruments of $7 and $24, respectively, which was invested and recorded in the Consolidated Balance Sheets in fixed maturities and short-term investments with corresponding amounts recorded in other investments or other liabilities as determined by the Company's election to offset on the balance sheet. The Company also accepted securities collateral as of December 31, 2021 and 2020 with a fair value of $5 and $1, respectively, which the Company has the right to repledge or sell. As of December 31, 2021 and 2020, the Company had no repledged securities. In addition, as of December 31, 2021 and 2020, non-cash collateral accepted was held in separate custodial accounts and was not included in the Company’s Consolidated Balance Sheets.

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			Index to Consolidated Financial Statements and Schedules
Table of Contents			Note 8 - Premiums Receivable and Agents' Balances

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

8. PREMIUMS RECEIVABLE AND AGENTS' BALANCES

Premiums Receivable and Agents' Balances
			As of December 31,
			2021			2020
Premiums receivable, excluding receivables for losses within a deductible and retrospectively-rated policy premiums ("loss sensitive business")			$	4,130		$	3,851
Receivables for loss sensitive business, by credit quality:
AAA			—			—
AA			130			142
A			52			62
BBB			133			185
BB			64			115
Below BB			41			65
Total receivables for loss sensitive business			420			569
Total Premiums Receivable and Agents' Balances, Gross			4,550			4,420
ACL			(105)			(152)
Total Premiums Receivable and Agents' Balances, Net of ACL			$	4,445		$	4,268

ACL on Premiums Receivable and Agents' Balances

Premiums receivable and agents' balances, excluding receivables for loss sensitive business, are primarily comprised of premiums due from policyholders, which are typically collectible within one year or less. For these balances, the ACL is estimated based on an aging of receivables and recent historical credit loss and collection experience, adjusted for current economic conditions and reasonable and supportable forecasts, when appropriate. Balances are considered past due when amounts that have been billed are not collected within contractually stipulated time periods. The Company had an immaterial amount of receivables with a due date of more than one year that are past-due.

A portion of the Company's Commercial Lines business is written with large deductibles or under retrospectively-rated plans (referred to as "loss sensitive business"). Under some commercial insurance contracts with a large deductible, the Company is obligated to pay the claimant the full amount of the claim and the Company is subsequently reimbursed by the policyholder for the deductible amount. As such, the Company is subject to credit risk until reimbursement is made. Retrospectively-rated policies are utilized primarily for workers' compensation coverage, whereby the ultimate premium is adjusted based on actual losses incurred. Although the premium adjustment feature of a retrospectively-rated policy substantially reduces insurance risk for the Company, it presents credit risk to the Company. The Company’s results of operations could be adversely affected if a significant portion of such policyholders

failed to reimburse the Company for the deductible amount or the amount of additional premium owed under retrospectively-rated policies. The Company manages these credit risks through credit analysis, collateral requirements, and oversight.

The ACL for receivables for loss sensitive business is estimated as the amount of the receivable exposed to loss multiplied by estimated factors for probability of default and the amount of loss given a default. The probability of default is assigned based on each policyholder's credit rating, or a rating is estimated if no external rating is available. Credit ratings are reviewed and updated at least annually. The exposure amount is estimated net of collateral and other credit enhancement, considering the nature of the collateral, potential future changes in collateral values, and historical loss information for the type of collateral obtained. The probability of default factors are historical corporate defaults for receivables with similar durations estimated through multiple economic cycles. Credit ratings are forward-looking and consider a variety of economic outcomes. The loss given default factors are based on a study of historical recovery rates for general creditors through multiple economic cycles. The Company's evaluation of the required ACL for receivables for loss sensitive business considers the current economic environment as well as the probability-weighted macroeconomic scenarios similar to the approach used for estimating the ACL for mortgage loans. See Note 6 - Investments.

During 2021, the ACL on premiums receivable decreased as the provision required on premiums written during the year was more than offset by write-offs and a reduction in the provision, primarily reflecting lessening expected impacts of COVID-19 relative to prior assumptions in certain lines of business. In 2020, an increase in the ACL was due to the increasing impacts of COVID-19.

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			Index to Consolidated Financial Statements and Schedules
Table of Contents			Note 8 - Premiums Receivable and Agents' Balances

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

Rollforward of ACL on Premiums Receivable and Agents' Balances for the Year Ended
			December 31, 2021												December 31, 2020
			Premiums Receivable and Agents' Balances, Excluding Receivables for Loss Sensitive Business			Receivables for Loss Sensitive Business			Total						Premiums Receivable and Agents' Balances, Excluding Receivables for Loss Sensitive Business			Receivables for Loss Sensitive Business			Total
Beginning ACL			$	117		$	35		$	152					$	85		$	60		$	145
Cumulative effect of accounting change [1]															(2)			(21)			(23)
Adjusted beginning ACL			117			35			152						83			39			122
Current period provision (release)			17			(13)			4						78			(4)			74
Current period gross write-offs			(59)			—			(59)						(49)			—			(49)
Current period gross recoveries			8			—			8						5			—			5
Ending ACL			$	83		$	22		$	105					$	117		$	35		$	152

*[1]*Represents the adjustment to the ACL recorded on adoption of accounting guidance for credit losses on January 1, 2020. The adjusted beginning ACL was based on the Company's historical loss information adjusted for current conditions and the forecasted economic environment at the time the guidance was adopted. For further information refer to Note 1 - Basis of Presentation and Significant Accounting Policies.

9. REINSURANCE

The Company cedes insurance risk to reinsurers to enable the Company to manage capital and risk exposure. Such arrangements do not relieve the Company of its primary liability to policyholders. Failure of reinsurers to honor their obligations could result in losses to the Company. The Company's procedures include carefully selecting its reinsurers, structuring agreements to provide collateral funds where necessary, and regularly monitoring the financial condition and ratings of its reinsurers.

The Company has two adverse development cover (“ADC”) reinsurance agreements in place, both of which are accounted for as retroactive reinsurance. One agreement covers substantially all asbestos and environmental ("A&E") reserve development for 2016 and prior accident years ("A&E ADC") up to an aggregate limit of $1.5 billion and the other covered substantially all reserve development of Navigators Insurance Company and certain of its affiliates for 2018 and prior accident years (the Navigators ADC) up to an aggregate limit of $300. As the Company has ceded all of the $300 available limit, there is no remaining limit available as of December 31, 2021 under the Navigators ADC. For more information on ADC agreements, see Note 1 -Basis of Presentation and Significant Accounting Policies, and Note 12 -Reserve for Unpaid Losses and Loss Adjustment Expenses.

Property and Casualty ceded losses, which reduce losses and loss adjustment expenses incurred, were $1,243, $1,156 and

$826 for the years ended December 31, 2021, 2020 and 2019, respectively.

Group Benefits ceded losses, which reduce losses and loss adjustment expenses incurred, were $85, $63 and $73 for the years ended December 31, 2021, 2020 and 2019, respectively.

Reinsurance Recoverables

Reinsurance recoverables include balances due from reinsurance companies and are presented net of an allowance for uncollectible reinsurance. Reinsurance recoverables include an estimate of the amount of gross losses and loss adjustment expense reserves that may be ceded under the terms of the reinsurance agreements, including incurred but not reported unpaid losses. The Company’s estimate of losses and loss adjustment expense reserves ceded to reinsurers is based on assumptions that are consistent with those used in establishing the gross reserves for amounts the Company owes to its claimants. The Company estimates its ceded reinsurance recoverables based on the terms of any applicable facultative and treaty reinsurance, including an estimate of how incurred but not reported losses will ultimately be ceded under reinsurance agreements. Accordingly, the Company’s estimate of reinsurance recoverables is subject to similar risks and uncertainties as the estimate of the gross reserve for unpaid losses and loss adjustment expenses.

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			Index to Consolidated Financial Statements and Schedules
Table of Contents			Note 9 - Reinsurance

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

Reinsurance Recoverables by Credit Quality Indicator
			As of December 31, 2021															As of December 31, 2020
			Property and Casualty			Group Benefits			Corporate			Total						Property and Casualty			Group Benefits			Corporate			Total
AM Best Financial Strength Rating
A++			$	1,860		$	—		$	—		$	1,860					$	1,598		$	—		$	—		$	1,598
A+			1,999			237			275			2,511						1,788			230			305			2,323
A			713			—			—			713						638			—			—			638
A-			37			9			—			46						37			9			—			46
B++			639			—			3			642						666			—			3			669
Below B++			20			—			—			20						21			1			—			22
Total Rated by AM Best			5,268			246			278			5,792						4,748			240			308			5,296
Mandatory (Assigned) and Voluntary Risk Pools			239			—			—			239						259			—			—			259
Captives			331			—			—			331						305			—			—			305
Other not rated companies			255			5			—			260						254			5			—			259
Gross Reinsurance Recoverables			6,093			251			278			6,622						5,566			245			308			6,119
Allowance for uncollectible reinsurance			(96)			(1)			(2)			(99)						(105)			(1)			(2)			(108)
Net Reinsurance Recoverables			$	5,997		$	250		$	276		$	6,523					$	5,461		$	244		$	306		$	6,011

Balances are considered past due when amounts that have been billed are not collected within contractually stipulated time periods, generally 30, 60 or 90 days. To manage reinsurer credit risk, a reinsurance security review committee evaluates the credit standing, financial performance, management and operational quality of each potential reinsurer. In placing reinsurance, the Company considers the nature of the risk reinsured, including the expected liability payout duration, and establishes limits tiered by reinsurer credit rating.

Where its contracts permit, the Company secures future claim obligations with various forms of collateral or other credit enhancement, including irrevocable letters of credit, secured trusts, funds held accounts and group wide offsets. As part of its reinsurance recoverable review, the Company analyzes recent developments in commutation activity between reinsurers and cedants, recent trends in arbitration and litigation outcomes in disputes between cedants and reinsurers and the overall credit quality of the Company’s reinsurers.

Due to the inherent uncertainties as to collection and the length of time before reinsurance recoverables become due, it is possible that future adjustments to the Company’s reinsurance recoverables, net of the allowance, could be required, which could have a material adverse effect on the Company’s consolidated results of operations or cash flows in a particular quarter or annual period.

The allowance for uncollectible reinsurance comprises an ACL and an allowance for disputed balances. The ACL is estimated as the amount of reinsurance recoverables exposed to loss multiplied by estimated factors for the probability of default and the amount of loss given a default. The probability of default is assigned based on each reinsurer's credit rating, or a rating is estimated if no external rating is available. Credit ratings are reviewed on a quarterly basis and any significant changes are reflected in an updated estimate. The probability of default

factors are historical insurer and reinsurer defaults for liabilities with similar durations to the reinsured liabilities as estimated through multiple economic cycles. Credit ratings are forward-looking and consider a variety of economic outcomes. The loss given default factors are based on a study of historical recovery rates for general creditors of corporations through multiple economic cycles or, in the case of purchased annuities funding structured settlements accounted for as reinsurance, historical recovery rates for annuity contract holders.

As shown in the table above, a portion of the total gross reinsurance recoverable balance relates to the Company’s participation in various mandatory (assigned) and voluntary risk pools. Reinsurance recoverables due from pools are backed by the financial position of all insurance companies participating in the pools and the credit backing the reinsurance recoverable is not limited to the financial strength of each pool. The mandatory pools generally are funded through policy assessments or surcharges and if any participant in the pool defaults, remaining liabilities are apportioned among the other members.

The Company's evaluation of the required ACL for reinsurance recoverables considers the current economic environment as well as macroeconomic scenarios similar to the approach used to estimate the ACL for mortgage loans. See Note 6 - Investments. Insurance companies, including reinsurers, are regulated and hold risk-based capital to mitigate the risk of loss due to economic factors and other risks. Non-U.S. reinsurers are either subject to a capital regime substantively equivalent to domestic insurers or we hold collateral to support collection of reinsurance recoverables. As a result, there is limited history of losses from insurer defaults. There were $1 in write-offs for the period ended December 31, 2021 that would impact the ACL. The decrease in the ACL in 2021 was primarily due to a higher-than-expected recovery from one reinsurer on which the Company had recognized an ACL. In 2020, the increase in the ACL includes the increasing impacts of COVID-19.

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			Index to Consolidated Financial Statements and Schedules
Table of Contents			Note 9 - Reinsurance

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

Allowance for Uncollectible Reinsurance
			As of December 31, 2021															As of December 31, 2020
			Property and Casualty			Group Benefits			Corporate			Total						Property and Casualty			Group Benefits			Corporate			Total
Beginning allowance for uncollectible reinsurance			$	105		$	1		$	2		$	108					$	114		$	—		$	—		$	114
Beginning allowance for disputed amounts			53			—			—			53						66			—			—			66
Beginning ACL			52			1			2			55						48			—			—			48
Cumulative effect of accounting change [1]																		—			1			1			2
Adjusted beginning ACL			52			1			2			55						48			1			1			50
Current period provision (release)			(9)			—			—			(9)						3			—			1			4
Current period gross write-offs			(1)			—			—			(1)						—			—			—			—
Current period gross recoveries			—			—			—			—						1			—			—			1
Ending ACL			42			1			2			45						52			1			2			55
Ending allowance for disputed amounts			54			—			—			54						53			—			—			53
Ending allowance for uncollectible reinsurance			$	96		$	1		$	2		$	99					$	105		$	1		$	2		$	108

[1]Represents the adjustment to the ACL recorded on adoption of accounting guidance for credit losses on January 1, 2020. For further information refer to Note 1 - Basis of Presentation and Significant Accounting Policies

Insurance Revenues

Property and Casualty Insurance Revenue

			For the years ended December 31,
Premiums Written			2021			2020			2019
Direct			$	13,696		$	12,537		$	12,190
Assumed			631			577			371
Ceded			(1,378)			(1,209)			(978)
Net			$	12,949		$	11,905		$	11,583
Premiums Earned
Direct			$	13,204		$	12,551		$	12,010
Assumed			568			540			416
Ceded			(1,277)			(1,173)			(936)
Net			$	12,495		$	11,918		$	11,490

Group Benefits Revenue

			For the years ended December 31,
			2021			2020			2019
Gross earned premiums, fees and other considerations			$	5,663		$	5,245		$	4,122
Reinsurance assumed			128			387			1,572
Reinsurance ceded			(104)			(96)			(91)
Net earned premiums, fees and other considerations			$	5,687		$	5,536		$	5,603

For its group benefits products, the Company reinsures certain of its risks to other reinsurers under yearly renewable term and coinsurance arrangements and variations thereto. Yearly renewable term and coinsurance arrangements result in passing

a portion of the risk to the reinsurer. Generally, the reinsurer receives a proportionate amount of the premiums less an allowance for commissions and expenses and is liable for a corresponding proportionate amount of all benefit payments.

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			Index to Consolidated Financial Statements and Schedules
Table of Contents			Note 10 - Deferred Policy Acquisition Costs

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

10. DEFERRED POLICY ACQUISITION COSTS

Changes in DAC

			For the years ended December 31,
			2021			2020			2019
Balance, beginning of period			$	789		$	785		$	670
Deferred costs			1,751			1,666			1,635
Amortization — DAC			(1,680)			(1,706)			(1,622)
Add back amortization of value of business acquired [1]			21			47			102
DAC transferred to assets held for sale			—			(3)			—
Balance, end of period			$	881		$	789		$	785

*[1]*While the value of in-force contracts acquired from the Navigators Group acquisition is included in other intangible assets, the amortization of that asset is recorded as DAC amortization.

11. GOODWILL & OTHER INTANGIBLE ASSETS

Goodwill Carrying Value as of December 31, 2021

			Commercial Lines			Personal Lines			Hartford Funds			Group Benefits			Corporate [1]			Total
Balance at December 31, 2019			$	661		$	119		$	180		$	723		$	230		$	1,913
Measurement period adjustments [2]			(2)			—			—			—			—			(2)
Balance at December 31, 2020			$	659		$	119		$	180		$	723		$	230		$	1,911
Measurement period adjustments [2]			—			—			—			—			—			—
Balance at December 31, 2021			$	659		$	119		$	180		$	723		$	230		$	1,911

*[1]*The Corporate category includes goodwill that was acquired at a holding company level and not pushed down to a subsidiary within a reportable segment. Carrying value of goodwill within Corporate as of December 31, 2021, 2020, and 2019 includes $138 and $92 for the Group Benefits and Hartford Funds reporting units, respectively.

[2] For further discussion on goodwill related to the acquisition of Navigators Group, refer to Note 2 - Business Acquisitions .

The annual goodwill assessment for The Hartford's reporting units was completed as of October 31, 2021, 2020, and 2019, which resulted in no write-downs of goodwill in the respective

years then ended. In 2021, all reporting units passed their annual impairment test with a significant margin.

Other Intangible Assets

			As of December 31, 2021												As of December 31, 2020
			Gross Carrying Amount			Accumulated Amortization			Net Carrying Amount						Gross Carrying Amount			Accumulated Amortization			Net Carrying Amount
Amortized Intangible Assets:
Value of in-force contracts			$	203		$	(194)		$	9					$	203		$	(172)		$	31
Customer relationships			636			(177)			459						636			(134)			502
Marketing agreement with Aetna			16			(4)			12						16			(3)			13
Distribution Agreement [1]			79			(68)			11						79			(65)			14
Distribution and Agency relationships & Other			340			(68)			272						340			(45)			295
Total Finite Life Intangibles			1,274			(511)			763						1,274			(419)			855
Total Indefinite Life Intangible Assets			95						95						95						95
Total Other Intangible Assets			$	1,369		$	(511)		$	858					$	1,369		$	(419)		$	950

*[1]*On May 28, 2020, the Company amended its distribution agreement to, among other changes in terms, extend the agreement. As a result of this extension in term, The Hartford reassessed the useful life of the distribution agreement to amortize over a remaining life of approximately 6.5 years.

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			Index to Consolidated Financial Statements and Schedules
Table of Contents			Note 11 - Goodwill & Other Intangible Assets

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

Expected Before Tax Amortization Expense [1] for Acquired Intangibles as of December 31, 2021

			Value of In-force Contracts			Other Intangible Assets
2022			$	9		$	70
2023			$	—		$	70
2024			$	—		$	70
2025			$	—		$	70
2026			$	—		$	70

*[1]*In the Consolidated Statements of Operations, the amortization of value of in-force contracts is reported in amortization of deferred policy acquisition costs and the amortization of other intangible assets is reported in amortization of other intangible assets.

12. RESERVE FOR UNPAID LOSSES AND LOSS ADJUSTMENT EXPENSES

|PROPERTY & CASUALTY INSURANCE PRODUCT RESERVES, NET OF REINSURANCE

Rollforward of Liabilities for Unpaid Losses and Loss Adjustment Expenses

			For the years ended December 31,
			2021			2020			2019
Beginning liabilities for unpaid losses and loss adjustment expenses, gross			$	29,622		$	28,261		$	24,584
Reinsurance and other recoverables			5,725			5,275			4,232
Beginning liabilities for unpaid losses and loss adjustment expenses, net			23,897			22,986			20,352
Navigators Group acquisition			—			—			2,001
Provision for unpaid losses and loss adjustment expenses
Current accident year			7,911			7,794			7,463
Prior accident year development [1]			199			(136)			(65)
Total provision for unpaid losses and loss adjustment expenses			8,110			7,658			7,398
Change in deferred gain on retroactive reinsurance included in other liabilities [1]			(246)			(312)			(16)
Payments
Current accident year			(2,276)			(2,214)			(2,374)
Prior accident years			(4,119)			(4,190)			(4,374)
Total payments			(6,395)			(6,404)			(6,748)
Net change in reserves transferred to liabilities held for sale			—			(45)			—
Foreign currency adjustment			2			14			(1)
Ending liabilities for unpaid losses and loss adjustment expenses, net			25,368			23,897			22,986
Reinsurance and other recoverables			6,081			5,725			5,275
Ending liabilities for unpaid losses and loss adjustment expenses, gross			$	31,449		$	29,622		$	28,261

*[1]*Prior accident year development does not include the benefit of a portion of losses ceded under the Navigators and A&E ADC which, under retroactive reinsurance accounting, is deferred and is recognized over the period the ceded losses are recovered in cash from NICO. For additional information regarding the two adverse development cover reinsurance agreements, refer to Adverse Development Covers discussion below.

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			Index to Consolidated Financial Statements and Schedules
Table of Contents			Note 12 - Reserves for Unpaid Loss and Loss Adjustment Expenses

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

Property and Casualty Insurance Products Reserves, Net of Reinsurance, that are Discounted

			For the years ended December 31,
			2021									2020									2019
Liability for unpaid losses and loss adjustment expenses, at undiscounted amounts			$	1,405								$	1,334								$	1,331
Amount of discount			355									367									388
Carrying value of liability for unpaid losses and loss adjustment expenses			$	1,050								$	967								$	943
Discount accretion included in losses and loss adjustment expenses			$	36								$	36								$	33
Weighted average discount rate			2.54								%	2.68								%	2.91								%
Range of discount rates			0.83		%	-			14.03		%	0.83		%	-			14.03		%	1.76		%	-			14.03		%

Reserves are discounted at rates in effect at the time claims were incurred, ranging from 0.83% for accident year 2020 to 14.03% for accident year 1981.

The reserves recorded for the Company’s property and casualty insurance products at December 31, 2021 represent the Company’s best estimate of its ultimate liability for losses and loss adjustment expenses related to losses covered by policies written by the Company. However, because of the significant uncertainties surrounding reserves it is possible that management’s estimate of the ultimate liabilities for these claims may change and that the required adjustment to recorded reserves could exceed the currently recorded reserves by an amount that could be material to the Company’s results of operations or cash flows.

Losses and loss adjustment expenses are also impacted by trends including frequency and severity as well as changes in the legislative and regulatory environment. In the case of the reserves for asbestos exposures, factors contributing to the high degree of uncertainty in the ultimate settlement of the liabilities gross of reinsurance include inadequate loss development patterns, plaintiffs’ expanding theories of liability, the risks inherent in major litigation, and inconsistent emerging legal doctrines. In the case of the reserves for environmental exposures before reinsurance, factors contributing to the high degree of uncertainty in gross reserves include expanding theories of liabilities and damages, the risks inherent in major litigation, inconsistent decisions concerning the existence and scope of coverage for environmental claims, and uncertainty as to the monetary amount being sought by the claimant from the insured.

(Favorable) Unfavorable Prior Accident Year Development

			For the years ended December 31,
			2021			2020			2019
Workers’ compensation			$	(190)		$	(110)		$	(120)
Workers’ compensation discount accretion			35			35			33
General liability			454			237			61
Marine			1			3			8
Package business			(91)			(58)			(47)
Commercial property			(26)			(4)			(11)
Professional liability			(2)			(14)			29
Bond			(26)			(19)			(3)
Assumed reinsurance			(6)			(6)			3
Automobile liability - Commercial Lines			9			27			27
Automobile liability - Personal Lines			(90)			(61)			(38)
Homeowners			3			7			3
Net asbestos and environmental reserves			—			(2)			—
Catastrophes			(154)			(529)			(42)
Uncollectible reinsurance			(6)			(8)			(30)
Other reserve re-estimates, net			42			54			46
Prior accident year development, including full benefit for the ADC cession			(47)			(448)			(81)
Change in deferred gain on retroactive reinsurance included in other liabilities [1]			246			312			16
Total prior accident year development			$	199		$	(136)		$	(65)

[1]The change in deferred gain for the years ended December 31, 2021 and 2020 included $155 and $210, respectively of adverse development on A&E reserves in excess of ceded premium paid and included $91 and $102, respectively, of adverse development on Navigators 2018 and prior accident year reserves, primarily within professional liability, general liability and marine.

2021 re-estimates of prior accident year reserves

Workers’ compensation reserves were decreased within small commercial and middle & large commercial for the

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			Index to Consolidated Financial Statements and Schedules
Table of Contents			Note 12 - Reserves for Unpaid Loss and Loss Adjustment Expenses

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

2013 through 2018 accident years driven by lower than previously estimated claim severity.

General liability reserves were increased including an increase for sexual molestation and sexual abuse claims above the amount of reserves previously recorded for this exposure, primarily to reflect an increase in reserves for claims made against the Boy Scouts of America ("BSA") as discussed further below, partially offset by reserve decreases for other mass torts and extra contractual liability claims. In addition, the Company recognized reserve increases on Navigators’ wholesale construction business for 2018 and prior accident years, largely included within the change in deferred gain on retroactive reinsurance in the above table.

Package business reserves decreased largely due to lower estimated loss adjustment expenses for accident years 2014 to 2018 and a reduction in estimated reserves for extra contractual liability claims.

Commercial property reserves were decreased primarily due to favorable development for the 2020 accident year in both middle & large commercial and global specialty.

Professional liability reserves were decreased due to lower estimated severity in both large and middle market directors’ and officers’ (“D&O”) insurance for older accident years. More than offsetting this favorable reserve development were reserve increases on legacy Navigators public company directors’ and officers’ insurance for 2019 and prior accident years, a portion of which is reflected within the change in deferred gain on retroactive reinsurance in the above table.

Bond reserves were reduced mostly due to favorable emergence on contract surety claims driven by higher than previously anticipated recoveries, largely for the 2016 to 2017 accident years.

Automobile liability reserves were decreased in Personal Lines principally due to lower estimated severity on AARP Direct and Agency claims, primarily within accident years 2017 to 2020, and a reduction in estimated reserves for extra contractual liability claims.

Catastrophes reserves were decreased in both Commercial and Personal Lines primarily driven by a reduction in reserves for 2018 and 2019 wind and hail events, lower estimated losses from 2018 and 2020 hurricanes, a reduction in estimated losses from the 2017 and 2018 California wildfires, including an expected recovery of subrogation from a utility related to the 2018 Woolsey wildfire in California, and a reduction in losses relating to the 2020 civil unrest.

Asbestos and environmental reserves were reviewed in fourth quarter 2021 resulting in a $155 increase in reserves before ADC reinsurance, including $106 for asbestos and $49 for environmental. The Company recognized a $155 deferred gain on retroactive reinsurance, representing the amount of losses ceded to the ADC in excess of ceded premium paid. For additional information related to the adverse development cover with NICO, see the Adverse Development Covers section below and Note 15 - Commitments and Contingencies.

Other reserve re-estimates, net, were increased primarily due to an increase in reserves for sexual molestation and sexual abuse claims within P&C Other Operations, principally on assumed reinsurance, as well as an increase in unallocated loss adjustment expense ("ULAE") reserves within P&C Other Operations driven by an increase in gross asbestos and environmental reserves.

2020 re-estimates of prior accident year reserves

Workers’ compensation reserves were reduced on national account business within middle & large commercial, driven by lower than previously estimated claim severity for the 2015 and prior accident years, including on captives business, and were reduced in small commercial due to lower than expected claim severity for the 2013 to 2018 accident years.

General liability reserves were increased primarily due to a $254 increase in reserves for sexual molestation and sexual abuse claims related to cases brought against religious and other organizations that were insureds of the Company, partly offset by a decrease in reserves for other mass torts and extra contractual liability claims. The sexual molestation and sexual abuse exposures may involve potentially long latency periods and may implicate coverage in multiple policy periods, which can raise complex coverage issues with significant effects on the ultimate scope of coverage. This increase in reserves reflects an increase in claim incidence largely due to reviver statutes, which is legislation passed in a number of states that provides an opportunity for claimants to file claims for a period of time despite the fact that the original statute of limitations had expired. The reserve increase in 2020 was principally from claims asserted against the Boy Scouts of America (“Boy Scouts”).

In addition, general liability reserve increases on construction account business were largely offset by decreases in ULAE reserves. Reserves were increased for guaranteed cost construction business for accident years 2014 to 2019 as incurred losses are developing higher than previously expected for premises and operations claims and product liability claims, partly due to a change in industry mix and a heavier concentration of losses in California than initially assumed, as well as increased reserves for middle market and complex liability claims for accident year 2018 largely due to higher than expected severity. Also contributing were increases in reserves on primary layer construction account business within global specialty, mainly related to accident years 2015 to 2017, which is included as a component of the change in deferred gain under retroactive reinsurance in the above table.

Marine reserves were increased principally due to an increase in domestic marine liability, mostly in accident years 2017 and 2018 due to a higher number of large losses. The increase in marine reserves is included as a component of the change in deferred gain under retroactive reinsurance in the above table.

Package business reserves decreased for accident years 2014 to 2017 largely due to lower estimates of allocated loss adjustment expenses.

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			Index to Consolidated Financial Statements and Schedules
Table of Contents			Note 12 - Reserves for Unpaid Loss and Loss Adjustment Expenses

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

Commercial property reserves were decreased for accident year 2019 due to favorable developments on marine and middle market property claims.

Professional liability reserves were decreased primarily due to lower estimated severity on non-security class action D&O claims and fewer than expected E&O claims with financial institutions for the 2011 to 2018 accident years, partially offset by an increase in D&O reserves for the 2019 accident year driven by higher frequency of class action lawsuits and an increase in large Syndicate D&O losses for the 2016 and 2017 accident years. These Syndicate reserve increases within global specialty are included as a component of the change in deferred gain under retroactive reinsurance in the above table.

Bond reserves were reduced within contract surety driven by both favorable loss development on the 2015 to 2017 accident years and higher than expected loss recoveries on older accident years

Assumed reinsurance reserves were increased for accident year 2018 mostly due to higher accident and health reserve estimates for medical professionals on assumed casualty business. These reserve increases are included as a component of the change in deferred gain under retroactive reinsurance in the above table.

Automobile liability reserves were decreased in Personal Lines principally due to lower than previously expected AARP Direct automobile liability claim severity for the 2017 to 2019 accident years. Automobile liability reserves were increased in Commercial Lines primarily due to higher than expected large losses within middle & large commercial, predominantly within the 2015 to 2019 accident years.

Catastrophes reserves were reduced, primarily due to a reduction in estimated reserves for 2017 and 2018 California wildfires and a reduction in estimated catastrophes for wind and hail events in the 2017 to 2019 accident years, partially offset by an increase in reserves for 2019 typhoons Hagibis and Faxai in Asia. The reduction in reserves for the 2017 and 2018 wildfires was largely due to recognizing a $289 subrogation benefit in the second quarter of 2020 from PG&E Corporation and Pacific Gas and Electric Company ("PG&E") as well as a reduction in gross estimated losses on those wildfires.

In December, 2019, the judge overseeing the bankruptcy of PG&E approved an $11 billion settlement of insurance subrogation claims to resolve all such claims arising from the 2017 Northern California wildfires and 2018 Camp wildfire. That settlement was contingent upon, among other things, the judge entering an order confirming PG&E’s chapter 11 bankruptcy plan (“PG&E Plan”) incorporating the settlement agreement. On June 20, 2020, the bankruptcy court judge approved the PG&E Plan and PG&E subsequently transferred the $11 billion settlement amount to a trust designed to allocate and distribute the settlement among subrogation holders, including certain of the Company’s insurance subsidiaries. In the second quarter of 2020, the Company recorded an estimated $289 subrogation benefit though the ultimate amount it collects will depend on how the Company’s ultimate paid claims subject to subrogation compare to other insurers’ ultimate paid claims subject to subrogation.

Uncollectible reinsurance reserves were reduced due to higher than expected recoveries from reinsurers in older accident years.

Asbestos and environmental reserves were reviewed in fourth quarter 2020 resulting in a $218 increase in reserves before ADC reinsurance, including $127 for asbestos and $91 for environmental. Of the $218 increase in A&E reserves, the Company ceded $220 to the A&E ADC resulting in a net reserve release of $2. Of the $220 of adverse development ceded to the A&E ADC, the Company recognized a $210 deferred gain on retroactive reinsurance, representing the amount of losses ceded to the ADC in excess of ceded premium paid. For additional information related to the adverse development cover with NICO, see the Adverse Development Covers section below and Note 15 - Commitments and Contingencies.

Other reserve re-estimates, net, primarily represents an increase in ULAE reserves in Property & Casualty Other Operations that was largely driven by an increase in gross asbestos and environmental reserves.

2019 re-estimates of prior accident year reserves

Workers’ compensation reserves were reduced, principally in small commercial driven by lower than previously estimated claim severity for the 2014 through 2017 accident years and, to a lesser extent, in national accounts due to lower estimated claim severity, primarily for accident years 2013 and prior.

General liability reserves were increased, primarily due to reserve increases in small commercial for accident years 2017 and 2018 due to higher frequency of high-severity bodily injury claims, reserve increases in middle & large commercial for accident years 2015 to 2018 due to higher estimated severity, as well as increased estimated severity on the acquired Navigators Group book of business related to U.S. construction, premises liability, products liability and excess casualty, mostly related to accident years 2014 to 2017. In addition, an increase in reserves for mass torts for 2009 and prior accident years was offset by a decrease in reserves for extra contractual liability claims for more recent accident years, including the 2018 accident year.

Marine reserves were increased, principally related to pollution exposure from the 1980s and 1990s related to the Navigators Group book of business.

Package business reserves were decreased, primarily due to favorable emergence on property claims related to accident years 2016 through 2018 and due to favorable development of loss adjustment expenses on general liability claims for 2017 and prior accident years.

Commercial property reserves were decreased, principally due to favorable emergence of reported losses, including on the acquired Navigators Group book of business, related to offshore energy in accident years 2017 to 2018 and construction engineering across accident years 2015 to 2018.

Professional liability reserves were increased, primarily due to increased securities litigation and large loss

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			Index to Consolidated Financial Statements and Schedules
Table of Contents			Note 12 - Reserves for Unpaid Loss and Loss Adjustment Expenses

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

activity, including wrongful termination and discrimination claims, related to accident years 2017 and 2018 and increased estimated frequency and severity of directors’ and officers’ reserves on the Navigators Group book of business, principally for the 2014 to 2018 accident years. Partially offsetting the increase was a decrease in average severity on public company directors’ and officers’ claim reserves and errors and omissions claim reserves for accident years 2014 and prior.

Automobile liability reserves were decreased in Personal Lines and increased in Commercial Lines. The decrease in Personal Lines was due to the emergence of lower estimated severity in automobile liability for accident year 2017. The increase in Commercial Lines was due to higher estimated severity on national accounts, principally in accident years 2017 and 2018, and higher estimated severity for accident year 2018 in small commercial and middle market, partially offset by lower estimated severity for 2017 and prior accident years in small commercial and middle market.

Catastrophes reserves were reduced, primarily as a result of lower estimated net losses from 2017 hurricanes Harvey and Irma and the 2017 California wildfires. While gross loss reserve estimates for the 2018 California wildfires were also reduced, this was largely offset by a reduction in reinsurance recoverables resulting in very little change to estimated net losses from those wildfires.

Uncollectible reinsurance reserves were reduced due to higher than expected recoveries from reinsurers in older accident years.

Other reserve re-estimates, net, primarily represents an increase in ULAE reserves in Property & Casualty Other Operations that was driven by an increase in gross asbestos and environmental reserves, as well as higher than anticipated ULAE costs in recent years, prompting an increase in the projected ULAE run rate.

Settlement Agreement with Boy Scouts of America

On September 14, 2021, the Company announced that it entered into a new agreement-in-principle with the BSA, related to sexual molestation and sexual abuse claims associated with liability policies issued by various Hartford writing companies in the 1970s and early 1980s, superseding its prior agreement of April 16, 2021, which now includes the BSA, its local councils and the representatives of a majority of the sexual abuse claimants. As part of the agreement-in-principle, The Hartford will pay $787, before tax, for claims associated with policies mostly issued in the 1970s. In exchange for The Hartford’s payment, the BSA and its local councils will fully release The Hartford from any obligation under policies The Hartford issued to the BSA and its local councils. In addition, the representatives for the claimants joining this agreement-in-principle will support a plan of reorganization which incorporates the settlement. The prior agreement of April 16, 2021 to settle these claims for $650 did not include the local councils or representatives of a majority of the claimants.

The agreement-in-principle was reached in connection with BSA’s Chapter 11 bankruptcy and will become a final settlement upon the occurrence of certain conditions, including, but not

limited to, execution of a definitive settlement agreement, confirmation of BSA’s plan of reorganization, receipt of executed releases from the local councils, and approval of the parties' settlement as part of the confirmation of BSA's plan of reorganization by the bankruptcy and district courts. Assuming that all conditions are satisfied, the parties to the agreement-in-principle expect to receive court approval of the settlement by mid 2022. However, no assurance can be given that all the conditions precedent to the settlement will be satisfied or that final court approval, if obtained, will not be delayed for various procedural reasons.

If the bankruptcy court ultimately does not approve BSA’s plan of reorganization including terms of the agreement-in-principle, it is possible that adverse outcomes, if any, could have a material adverse effect on the Company’s consolidated operating results.

Adverse Development Covers

The Company has an adverse development cover reinsurance agreement with NICO, a subsidiary of Berkshire Hathaway Inc., to reinsure loss development after 2016 on substantially all of the Company’s asbestos and environmental reserves (the “A&E ADC”). Under the A&E ADC, the Company paid a reinsurance premium of $650 for NICO to assume adverse net loss reserve development up to $1.5 billion above the Company’s existing net A&E reserves as of December 31, 2016 of approximately $1.7 billion including reserves for A&E exposure for accident years prior to 1986 that are reported in Property & Casualty Other Operations ("Run-off A&E") and reserves for A&E exposure for accident years 1986 and subsequent from policies underwritten prior to 2016 that are reported in ongoing Commercial Lines and Personal Lines. The $650 reinsurance premium was placed into a collateral trust account as security for NICO’s claim payment obligations to the Company. The Company has retained the risk of collection on amounts due from other third-party reinsurers and continues to be responsible for claims handling and other administrative services, subject to certain conditions. The A&E ADC covers substantially all the Company’s A&E reserve development up to the reinsurance limit.

Under retroactive reinsurance accounting, net adverse A&E reserve development after December 31, 2016 results in an offsetting reinsurance recoverable up to the $1.5 billion limit. Cumulative ceded losses up to the $650 reinsurance premium paid have been recognized as a dollar-for-dollar offset to direct losses incurred. Cumulative ceded losses exceeding the $650 reinsurance premium paid result in a deferred gain. As of December 31, 2021, the Company has incurred $1,015 in cumulative adverse development on asbestos and environmental reserves that have been ceded under the A&E ADC treaty with NICO with $485 of available limit remaining under the A&E ADC. As a result, the Company has recorded a $365 deferred gain within other liabilities, representing the difference between the reinsurance recoverable of $1,015 and ceded premium paid of $650. The deferred gain is recognized over the claim settlement period in the proportion of the amount of cumulative ceded losses collected from the reinsurer to the estimated ultimate reinsurance recoveries. Consequently, until periods when the deferred gain is recognized as a benefit to earnings, cumulative adverse development of asbestos and environmental claims will result in charges against earnings which may be significant.

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			Index to Consolidated Financial Statements and Schedules
Table of Contents			Note 12 - Reserves for Unpaid Loss and Loss Adjustment Expenses

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

Immediately after closing on the acquisition of Navigators Group, effective May 23, 2019, the Company purchased the Navigators ADC, an aggregate excess of loss reinsurance agreement covering adverse reserve development, from NICO on behalf of Navigators Insurers. Under the Navigators ADC, the Navigators Insurers paid NICO a reinsurance premium of $91 in exchange for reinsurance coverage of $300 of adverse net loss reserve development that attaches $100 above the Navigators Insurers' existing net loss and allocated loss adjustment reserves as of December 31, 2018 subject to the treaty of $1.816 billion for accidents and losses prior to December 31, 2018.

As of December 31, 2021, the Company has recorded a reinsurance recoverable under the Navigators ADC of $300 as estimated cumulative loss development on the 2018 and prior accident year reserves has exhausted the treaty limit. While the reinsurance recoverable is $300, the Company has recorded a $209 cumulative deferred gain within other liabilities since, under retroactive reinsurance accounting, ceded losses in excess of the $91 of ceded premium paid must be recognized as a deferred gain. Of the $209 of cumulative ceded losses in excess of ceded premium paid, $91, $102 and $16 were recognized as changes in deferred gain in 2021, 2020 and 2019, respectively.

Reconciliation of Loss Development to Liability for Unpaid Losses and Loss Adjustment Expenses As of December 31, 2021

			Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance																		Subtotal
Reserve Line			Cumulative Incurred for Accident Years Displayed in Triangles						Cumulative Paid for Accident Years Displayed in Triangles			Unpaid for Accident Years not Displayed in Triangles			Unpaid Unallocated Loss Adjustment Expenses, Net of Reinsurance			Discount						Unpaid Losses and Loss Adjustment Expenses, Net of Reinsurance			Reinsurance and Other Recoverables			Liability for Unpaid Losses and Loss Adjustment Expenses
Workers' compensation			$	18,263					$	(9,992)		$	2,981		$	348		$	(341)					$	11,259		$	1,793		$	13,052
General liability			6,731						(3,157)			1,240			146			—						4,960			870			5,830
Marine			1,516						(1,242)			17			12			—						303			235			538
Package business			6,952						(5,208)			77			103			—						1,924			90			2,014
Commercial property			3,830						(3,342)			24			18			—						530			268			798
Commercial automobile liability			3,908						(2,778)			22			23			—						1,175			91			1,266
Commercial automobile physical damage			172						(162)			4			—			—						14			(1)			13
Professional liability			2,511						(1,335)			47			38			—						1,261			781			2,042
Bond			625						(254)			32			31			—						434			10			444
Assumed Reinsurance			1,384						(1,106)			3			4			—						285			50			335
Personal automobile liability			11,104						(9,809)			29			66			—						1,390			23			1,413
Personal automobile physical damage			1,200						(1,170)			7			3			—						40			—			40
Homeowners			6,307						(5,982)			5			34			—						364			17			381
Other ongoing business												183			5			(14)						174			310			484
Asbestos and environmental [1]												724			—			—						724			1,545			2,269
Other operations [1]												374			157			—						531			(1)			530
Total P&C			$	64,503					$	(45,537)		$	5,769		$	988		$	(355)					$	25,368		$	6,081		$	31,449

*[1]*Asbestos and environmental and other operations include asbestos, environmental and other latent exposures not foreseen when coverages were written, including, but not limited to, potential liability for pharmaceutical products, silica, talcum powder, head injuries, lead paint, construction defects, sexual molestation and sexual abuse and other long-tail liabilities. These reserve lines do not have significant paid or incurred loss development for the most recent ten accident years and therefore do not have loss development displayed in triangles.

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			Index to Consolidated Financial Statements and Schedules
Table of Contents			Note 12 - Reserves for Unpaid Loss and Loss Adjustment Expenses

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

The reserve lines in the above table and the loss triangles that follow represent the significant lines of business for which the Company regularly reviews the appropriateness of reserve levels. These reserve lines differ from the reserve lines reported on a statutory basis, as prescribed by the National Association of Insurance Commissioners ("NAIC"). The cumulative incurred losses displayed in the above table include the full reinsurance benefit of ceding $300 of losses to the Navigators ADC even though $209 of that benefit has been recorded as a deferred gain within other liabilities and recognized as a charge to earnings within incurred loss and loss adjustment expenses included in the consolidated statement of operations. The $300 of Navigators Insurers losses ceded to the Navigators ADC included in the following triangles $110 for professional liability,$86 for general liability, $39 for marine, $29 for assumed reinsurance, $16 for commercial automobile and $3 for commercial property and included $17 for older accident years and lines of business that are not in the following triangles.

The following loss triangles present historical loss development for incurred and paid claims by accident year, including loss development on Navigators Insurers reserves prior to and after the May 23, 2019 acquisition date. Because the loss triangles include pre-acquisition date changes in ultimate incurred loss estimates for Navigators Insurers’ reserves, changes in reserve development evident in the incurred loss triangles may differ from prior accident year development recorded by the Company as shown in the (Favorable) Unfavorable Prior Accident Year Development table above as that only includes changes in Navigators Insurers’ reserves post acquisition. In addition, the incurred loss triangles include reserve development on both catastrophe and non-catastrophe claims whereas the (Favorable) Unfavorable Prior Accident Year Development table above shows the total amount of catastrophe reserve development across all lines of business on a single line.

Triangles are limited to the number of years for which claims incurred typically remain outstanding, not exceeding ten years. Short-tail lines, which represent claims generally expected to be paid within a few years, have three years of claim development displayed. Incurred but not reported ("IBNR") reserves shown in loss triangles include reserves for incurred but not reported claims as well as reserves for expected development on reported claims. Incurred and cumulative paid losses in currencies other than the U.S. dollar have been converted into U.S. dollars using the exchange rates as of December 31, 2021.

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			Index to Consolidated Financial Statements and Schedules
Table of Contents			Note 12 - Reserves for Unpaid Loss and Loss Adjustment Expenses

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

Workers' Compensation

Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance
			For the years ended December 31,
			(Unaudited)
Accident Year			2012			2013			2014			2015			2016			2017			2018			2019			2020			2021			IBNR Reserves			Claims Reported
2012			$	2,185		$	2,207		$	2,207		$	2,181		$	2,168		$	2,169		$	2,154		$	2,146		$	2,135		$	2,133		$	310		171,562
2013						2,020			1,981			1,920			1,883			1,861			1,861			1,850			1,831			1,811			346			151,492
2014									1,869			1,838			1,789			1,761			1,713			1,692			1,679			1,654			386			126,288
2015												1,873			1,835			1,801			1,724			1,714			1,699			1,667			412			114,113
2016															1,772			1,772			1,780			1,767			1,748			1,708			489			112,302
2017																		1,862			1,869			1,840			1,822			1,757			636			111,800
2018																					1,916			1,917			1,915			1,904			726			118,951
2019																								1,937			1,935			1,934			844			119,416
2020																											1,865			1,864			1,114			90,199
2021																														1,831			1,314			93,860
Total																														$	18,263

Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance
			For the years ended December 31,
			(Unaudited)
Accident Year			2012			2013			2014			2015			2016			2017			2018			2019			2020			2021
2012			$	359		$	809		$	1,106		$	1,313		$	1,436		$	1,529		$	1,587		$	1,644		$	1,678		$	1,706
2013						304			675			917			1,071			1,175			1,260			1,304			1,339			1,361
2014									275			598			811			960			1,041			1,099			1,137			1,167
2015												261			576			778			909			1,004			1,068			1,117
2016															255			579			779			908			1,003			1,064
2017																		261			575			778			900			977
2018																					283			624			837			983
2019																								291			637			856
2020																											223			507
2021																														254
Total																														$	9,992

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			Index to Consolidated Financial Statements and Schedules
Table of Contents			Note 12 - Reserves for Unpaid Loss and Loss Adjustment Expenses

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

General Liability

Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance
			For the years ended December 31,
			(Unaudited)
Accident Year			2012			2013			2014			2015			2016			2017			2018			2019			2020			2021			IBNR Reserves			Claims Reported
2012			$	423		$	402		$	399		$	392		$	410		$	408		$	421		$	413		$	407		$	406		$	41		16,768
2013						455			442			456			484			488			502			505			508			500			42			14,134
2014									506			475			481			494			513			522			515			505			52			15,242
2015												556			560			554			594			633			647			637			71			15,627
2016															613			583			607			632			632			620			92			16,817
2017																		626			614			613			615			613			174			16,447
2018																					692			669			697			703			295			17,749
2019																								822			827			822			512			16,858
2020																											938			923			739			11,991
2021																														1,002			929			8,364
Total																														$	6,731

Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance
			For the years ended December 31,
			(Unaudited)
Accident Year			2012			2013			2014			2015			2016			2017			2018			2019			2020			2021
2012			$	13		$	55		$	101		$	170		$	233		$	280		$	305		$	323		$	332		$	352
2013						13			53			141			233			320			372			398			422			442
2014									15			42			130			214			304			358			402			423
2015												10			55			156			278			409			477			524
2016															12			52			131			283			368			447
2017																		15			67			156			255			344
2018																					21			84			177			288
2019																								29			100			193
2020																											45			110
2021																														34
Total																														$	3,157

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			Index to Consolidated Financial Statements and Schedules
Table of Contents			Note 12 - Reserves for Unpaid Loss and Loss Adjustment Expenses

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

Marine

Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance
			For the years ended December 31,
			(Unaudited)
Accident Year			2012			2013			2014			2015			2016			2017			2018			2019			2020			2021			IBNR Reserves [1]			Claims Reported
2012			$	196		$	220		$	180		$	169		$	163		$	164		$	168		$	164		$	164		$	165		$	1		6,789
2013						149			152			134			136			140			135			138			140			139			(2)			6,629
2014									163			160			158			165			164			169			167			171			1			7,137
2015												158			146			146			148			134			138			140			(3)			10,137
2016															140			143			138			148			150			147			(17)			13,178
2017																		160			187			175			174			180			(8)			15,586
2018																					144			161			154			161			(8)			14,037
2019																								144			142			140			15			8,413
2020																											150			142			26			4,730
2021																														131			72			3,499
Total																														$	1,516

*[1]*Contributing to the negative IBNR reserves for some accident years is a lag in the timing of expected reinsurance recoveries under the Navigators ADC with NICO. Recoveries from NICO will not be collected until the Company has cumulative loss payments for all covered lines of more than the attachment point.

Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance
			For the years ended December 31,
			(Unaudited)
Accident Year			2012			2013			2014			2015			2016			2017			2018			2019			2020			2021
2012			$	51		$	101		$	125		$	139		$	148		$	152		$	155		$	159		$	158		$	159
2013						42			82			100			112			119			121			126			133			134
2014									41			81			116			131			151			157			159			162
2015												40			85			116			126			134			140			141
2016															35			80			106			123			132			141
2017																		48			111			142			154			163
2018																					37			104			138			148
2019																								36			83			101
2020																											32			69
2021																														24
Total																														$	1,242

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			Index to Consolidated Financial Statements and Schedules
Table of Contents			Note 12 - Reserves for Unpaid Loss and Loss Adjustment Expenses

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

Package Business

Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance
			For the years ended December 31,
			(Unaudited)
Accident Year			2012			2013			2014			2015			2016			2017			2018			2019			2020			2021			IBNR Reserves			Claims Reported
2012			$	736		$	725		$	728		$	731		$	736		$	735		$	739		$	732		$	732		$	727		$	24		59,921
2013						579			565			573			585			586			592			586			587			583			22			43,675
2014									566			578			601			602			603			603			593			581			29			43,321
2015												582			588			585			583			588			581			567			34			42,232
2016															655			638			632			625			611			595			51			44,079
2017																		695			702			692			657			644			73			46,638
2018																					719			724			688			667			114			44,822
2019																								813			769			749			175			43,073
2020																											915			893			316			61,161
2021																														946			412			40,792
Total																														$	6,952

Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance
			For the years ended December 31,
			(Unaudited)
Accident Year			2012			2013			2014			2015			2016			2017			2018			2019			2020			2021
2012			$	286		$	486		$	560		$	616		$	652		$	673		$	687		$	694		$	697		$	699
2013						225			339			414			467			504			522			541			549			552
2014									226			345			416			468			507			525			535			542
2015												212			332			383			445			486			505			513
2016															225			353			410			465			500			521
2017																		235			372			447			496			534
2018																					237			402			451			498
2019																								254			413			488
2020																											326			493
2021																														368
Total																														$	5,208

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			Index to Consolidated Financial Statements and Schedules
Table of Contents			Note 12 - Reserves for Unpaid Loss and Loss Adjustment Expenses

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

Commercial Property

Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance
			For the years ended December 31,
			(Unaudited)
Accident Year			2012			2013			2014			2015			2016			2017			2018			2019			2020			2021			IBNR Reserves			Claims Reported
2012			$	369		$	333		$	334		$	335		$	337		$	335		$	334		$	333		$	332		$	332		$	—		26,861
2013						268			252			254			252			249			248			247			247			247			—			21,620
2014									293			281			282			280			279			280			280			279			(1)			21,030
2015												299			301			302			301			305			304			301			—			21,029
2016															406			420			399			406			408			408			3			23,781
2017																		577			516			456			439			441			5			24,382
2018																					450			437			424			403			8			21,715
2019																								480			440			419			4			21,002
2020																											501			469			96			20,327
2021																														531			108			16,394
Total																														$	3,830

Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance
			For the years ended December 31,
			(Unaudited)
Accident Year			2012			2013			2014			2015			2016			2017			2018			2019			2020			2021
2012			$	182		$	296		$	317		$	326		$	331		$	331		$	331		$	330		$	330		$	330
2013						161			223			238			243			242			244			245			245			245
2014									170			250			270			279			279			279			280			280
2015												179			257			285			296			302			303			302
2016															215			342			379			396			402			406
2017																		229			378			412			427			433
2018																					188			344			379			386
2019																								215			351			383
2020																											221			336
2021																														241
Total																														$	3,342

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			Index to Consolidated Financial Statements and Schedules
Table of Contents			Note 12 - Reserves for Unpaid Loss and Loss Adjustment Expenses

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

Commercial Automobile Liability

Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance
			For the years ended December 31,
			(Unaudited)
Accident Year			2012			2013			2014			2015			2016			2017			2018			2019			2020			2021			IBNR Reserves			Claims Reported
2012			$	311		$	377		$	391		$	402		$	395		$	389		$	387		$	388		$	388		$	387		$	6		36,053
2013						311			318			334			341			340			339			336			334			333			7			32,242
2014									309			317			331			337			341			334			333			332			6			29,613
2015												308			358			372			356			356			359			360			10			28,565
2016															385			393			390			391			391			395			15			29,167
2017																		372			383			379			383			381			11			26,341
2018																					349			396			405			406			36			24,610
2019																								425			439			450			114			28,216
2020																											428			424			227			21,557
2021																														440			340			17,404
Total																														$	3,908

Cumulative Paid Losses & Allocated Loss Adjustment Expense, Net of Reinsurance
			For the years ended December 31
			(Unaudited)
Accident Year			2012			2013			2014			2015			2016			2017			2018			2019			2020			2021
2012			$	65		$	143		$	234		$	307		$	346		$	359		$	372		$	376		$	378		$	379
2013						62			130			202			259			295			311			320			323			324
2014									59			131			197			252			299			309			318			320
2015												62			142			207			267			314			335			344
2016															65			147			232			303			339			357
2017																		60			134			211			285			328
2018																					62			153			238			305
2019																								67			160			247
2020																											55			119
2021																														55
Total																														$	2,778

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			Index to Consolidated Financial Statements and Schedules
Table of Contents			Note 12 - Reserves for Unpaid Loss and Loss Adjustment Expenses

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

Commercial Automobile Physical Damage

Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance
			For the years ended December 31,
			(Unaudited)
Accident Year			2019			2020			2021			IBNR Reserves			Claims Reported
2019			$	63		$	64		$	63		$	1		19,853
2020						51			51			1			14,671
2021									58			2			14,253
Total									$	172

Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance
			For the years ended December 31,
			(Unaudited)
Accident Year			2019			2020			2021
2019			$	56		$	62		$	62
2020						45			50
2021									50
Total									$	162

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			Index to Consolidated Financial Statements and Schedules
Table of Contents			Note 12 - Reserves for Unpaid Loss and Loss Adjustment Expenses

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

Professional Liability

Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance
			For the years ended December 31,
			(Unaudited)
Claims Made Year			2012			2013			2014			2015			2016			2017			2018			2019			2020			2021			IBNR Reserves			Claims Reported
2012			$	242		$	238		$	238		$	218		$	221		$	221		$	219		$	225		$	217		$	212		$	(3)		7,037
2013						207			195			187			174			174			173			171			171			169			14			5,979
2014									187			183			181			178			179			182			183			174			21			6,734
2015												164			174			180			190			214			207			200			15			7,245
2016															183			176			204			197			196			197			27			8,391
2017																		205			203			232			226			241			47			9,466
2018																					248			281			278			278			74			10,040
2019																								298			317			336			150			9,654
2020																											370			365			259			7,713
2021																														339			310			5,450
Total																														$	2,511

Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance
			For the years ended December 31,
			(Unaudited)
Claims Made Year			2012			2013			2014			2015			2016			2017			2018			2019			2020			2021
2012			$	17		$	67		$	100		$	139		$	155		$	169		$	172		$	175		$	175		$	176
2013						10			44			67			88			116			131			137			142			148
2014									8			38			74			108			131			135			146			145
2015												9			40			85			107			125			141			164
2016															8			51			88			112			125			149
2017																		11			48			88			123			151
2018																					15			73			130			166
2019																								21			78			150
2020																											19			71
2021																														15
Total																														$	1,335

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			Index to Consolidated Financial Statements and Schedules
Table of Contents			Note 12 - Reserves for Unpaid Loss and Loss Adjustment Expenses

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

Bond

Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance
			For the years ended December 31,
			(Unaudited)
Accident Year			2012			2013			2014			2015			2016			2017			2018			2019			2020			2021			IBNR Reserves			Claims Reported
2012			$	71		$	70		$	61		$	55		$	49		$	49		$	45		$	48		$	48		$	46		$	11		1,729
2013						64			58			55			48			49			39			35			34			34			13			1,468
2014									71			67			66			67			59			59			60			60			8			1,387
2015												67			67			63			60			54			48			47			17			1,395
2016															61			61			61			55			51			45			23			1,339
2017																		63			90			101			94			79			36			1,724
2018																					68			68			72			71			36			1,664
2019																								72			73			74			58			1,779
2020																											83			84			71			1,889
2021																														85			68			1,960
Total																														$	625

Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance
			For the years ended December 31,
			(Unaudited)
Accident Year			2012			2013			2014			2015			2016			2017			2018			2019			2020			2021
2012			$	12		$	25		$	26		$	24		$	26		$	26		$	34		$	35		$	35		$	34
2013						3			9			17			19			19			19			20			20			20
2014									18			31			40			43			43			44			46			47
2015												9			20			24			31			34			32			30
2016															2			12			15			20			22			22
2017																		5			46			55			54			42
2018																					6			16			23			24
2019																								3			13			15
2020																											4			12
2021																														8
Total																														$	254

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			Index to Consolidated Financial Statements and Schedules
Table of Contents			Note 12 - Reserves for Unpaid Loss and Loss Adjustment Expenses

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

Assumed Reinsurance

Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance
			For the years ended December 31,
			(Unaudited)
Accident Year			2012			2013			2014			2015			2016			2017			2018			2019			2020			2021			IBNR Reserves [1]			Claims Reported
2012			$	107		$	99		$	93		$	88		$	115		$	120		$	119		$	120		$	120		$	120		$	—		1,468
2013						115			119			103			105			102			102			103			103			103			(1)			1,656
2014									119			142			122			118			115			116			116			115			(1)			1,820
2015												102			92			94			94			95			96			96			—			1,582
2016															89			91			98			100			102			102			(5)			1,730
2017																		129			153			162			157			153			(3)			2,166
2018																					129			128			130			135			(13)			2,263
2019																								181			190			187			20			2,522
2020																											183			181			71			1,623
2021																														192			104			584
Total																														$	1,384

*[1]*Contributing to the negative IBNR reserves for some accident years is a lag in the timing of expected reinsurance recoveries under the Navigators ADC with NICO. Recoveries from NICO will not be collected until the Company has cumulative loss payments for all covered lines of more than the attachment point.

Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance
			For the years ended December 31,
			(Unaudited)
Accident Year			2012			2013			2014			2015			2016			2017			2018			2019			2020			2021
2012			$	38		$	77		$	83		$	85		$	112		$	118		$	118		$	119		$	119		$	119
2013						53			83			91			98			100			101			103			103			103
2014									66			119			106			109			112			113			114			115
2015												42			65			77			83			91			94			95
2016															36			66			84			90			95			97
2017																		44			116			135			145			147
2018																					25			112			134			140
2019																								62			132			154
2020																											50			90
2021																														46
Total																														$	1,106

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			Index to Consolidated Financial Statements and Schedules
Table of Contents			Note 12 - Reserves for Unpaid Loss and Loss Adjustment Expenses

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

Personal Automobile Liability

Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance
			For the years ended December 31,
			(Unaudited)
Accident Year			2012			2013			2014			2015			2016			2017			2018			2019			2020			2021			IBNR Reserves			Claims Reported
2012			$	1,141		$	1,149		$	1,146		$	1,142		$	1,133		$	1,130		$	1,130		$	1,130		$	1,129		$	1,128		$	4		210,757
2013						1,131			1,145			1,144			1,153			1,152			1,153			1,157			1,156			1,155			6			205,485
2014									1,146			1,153			1,198			1,200			1,199			1,202			1,201			1,199			6			209,022
2015												1,195			1,340			1,338			1,330			1,331			1,328			1,324			8			216,889
2016															1,407			1,402			1,393			1,397			1,395			1,386			11			215,839
2017																		1,277			1,275			1,228			1,214			1,200			18			187,513
2018																					1,108			1,104			1,072			1,058			51			156,152
2019																								1,018			1,010			991			97			139,360
2020																											805			782			192			95,755
2021																														881			444			94,494
Total																														$	11,104

Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance
			For the years ended December 31,
			(Unaudited)
Accident Year			2012			2013			2014			2015			2016			2017			2018			2019			2020			2021
2012			$	441		$	818		$	986		$	1,067		$	1,104		$	1,114		$	1,120		$	1,122		$	1,123		$	1,123
2013						442			816			1,002			1,091			1,121			1,135			1,142			1,144			1,148
2014									430			843			1,032			1,125			1,165			1,182			1,186			1,190
2015												475			935			1,142			1,243			1,292			1,304			1,310
2016															505			968			1,188			1,308			1,345			1,363
2017																		441			836			1,033			1,123			1,161
2018																					359			710			888			965
2019																								323			654			816
2020																											238			486
2021																														247
Total																														$	9,809

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			Index to Consolidated Financial Statements and Schedules
Table of Contents			Note 12 - Reserves for Unpaid Loss and Loss Adjustment Expenses

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

Personal Automobile Physical Damage

Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance
			For the years ended December 31,
			(Unaudited)
Accident Year			2019			2020			2021			IBNR Reserves			Claims Reported
2019			$	445		$	442		$	441		$	—		277,060
2020						349			346			5			210,783
2021									413			(6)			213,209
Total									$	1,200

Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance
			For the years ended December 31,
			(Unaudited)
Accident Year			2019			2020			2021
2019			$	427		$	441		$	441
2020						333			341
2021									388
Total									$	1,170

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			Index to Consolidated Financial Statements and Schedules
Table of Contents			Note 12 - Reserves for Unpaid Loss and Loss Adjustment Expenses

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

Homeowners

Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance
			For the years ended December 31,
			(Unaudited)
Accident Year			2012			2013			2014			2015			2016			2017			2018			2019			2020			2021			IBNR Reserves			Claims Reported
2012			$	774		$	741		$	741		$	741		$	739		$	738		$	738		$	738		$	737		$	737		$	—		142,860
2013						673			638			637			634			632			630			629			630			629			1			113,552
2014									710			707			702			700			698			698			698			698			—			121,923
2015												690			703			690			684			684			684			684			1			119,997
2016															669			673			663			658			658			658			2			119,793
2017																		866			889			884			783			775			6			124,713
2018																					903			910			673			642			(6)			102,784
2019																								501			475			470			13			84,536
2020																											525			512			26			87,841
2021																														502			107			71,196
Total																														$	6,307

Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance
			For the years ended December 31,
			(Unaudited)
Accident Year			2012			2013			2014			2015			2016			2017			2018			2019			2020			2021
2012			$	547		$	696		$	719		$	727		$	731		$	734		$	735		$	736		$	736		$	736
2013						467			590			611			622			626			627			628			628			628
2014									526			663			684			691			695			697			697			698
2015												487			645			665			674			680			681			681
2016															481			621			640			649			653			655
2017																		538			747			795			757			761
2018																					484			712			616			619
2019																								318			425			445
2020																											335			454
2021																														305
Total																														$	5,982

Property and casualty reserves, including IBNR reserves

The Company estimates ultimate losses and allocated loss adjustment expenses by accident year. IBNR represents the excess of estimated ultimate loss reserves over case reserves. The process to estimate ultimate losses and loss adjustment expenses is an integral part of the Company's reserve setting. Reserves for allocated and unallocated loss adjustment expenses are generally established separate from the reserves for losses.

Reserves for losses are set by line of business within the reporting segments. Case reserves are established by a claims handler on each individual claim and are adjusted as new information becomes known during the course of handling the

claim. Lines of business for which reported losses emerge over a long period of time are referred to as long-tail lines of business. Lines of business for which reported losses emerge more quickly are referred to as short-tail lines of business. The Company’s shortest tail lines of business are homeowners, commercial property and automobile physical damage. The longest tail lines of business include workers’ compensation, general liability and professional liability. For short-tail lines of business, emergence of paid loss and case reserves is credible and likely indicative of ultimate losses. For long-tail lines of business, emergence of paid losses and case reserves is less credible in the early periods after a given accident year and, accordingly, may not be indicative of ultimate losses.

The Company’s reserving actuaries regularly review reserves for both current and prior accident years using the most current

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			Index to Consolidated Financial Statements and Schedules
Table of Contents			Note 12 - Reserves for Unpaid Loss and Loss Adjustment Expenses

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

claim data. A variety of actuarial methods and judgments are used for most lines of business to arrive at selections of estimated ultimate losses and loss adjustment expenses. The reserve selections incorporate input, as appropriate, from claims personnel, pricing actuaries and operating management about reported loss cost trends and other factors that could affect the reserve estimates.

For both short-tail and long-tail lines of business, an expected loss ratio is used to record initial reserves. This expected loss ratio is determined by starting with the average loss ratio of recent prior accident years and adjusting that ratio for the effect of expected changes to earned pricing, loss frequency and severity, mix of business, ceded reinsurance and other factors. For short-tail lines, IBNR for the current accident year is initially recorded as the product of the expected loss ratio for the period, earned premium for the period and the proportion of losses expected to be reported in future calendar periods for the current accident period. For long-tailed lines, IBNR reserves for the current accident year are initially recorded as the product of the expected loss ratio for the period and the earned premium for the period, less reported losses for the period. For certain short-tailed lines of business, IBNR amounts in the above loss development triangles are negative due to anticipated salvage and subrogation recoveries on paid losses.

As losses for a given accident year emerge or develop in subsequent periods, reserving actuaries use other methods to estimate ultimate unpaid losses in addition to the expected loss ratio method. These primarily include paid and reported loss development methods, frequency/severity techniques and the Bornhuetter-Ferguson method (a combination of the expected loss ratio and paid development or reported development method). Within any one line of business, the methods that are given more weight vary based primarily on the maturity of the accident year, the mix of business and the particular internal and external influences impacting the claims experience or the methods. The output of the reserve reviews are reserve estimates that are referred to as actuarial indications.

Paid development and reported development techniques are used for most lines of business though more weight is given to the reported development method for some of the long-tailed lines like general liability. In addition, for long-tailed lines of business, the Company relies on the expected loss ratio method for immature accident years. Frequency/severity techniques are used predominantly for professional liability and are also used for automobile liability. The Berquist-Sherman technique is also used for automobile liability, marine and assumed reinsurance. For most lines, reserves for allocated loss adjustment expenses ("ALAE", or those expenses related to specific claims) are analyzed using paid development techniques and an analysis of the relationship between ALAE and loss payments. For most of the lines acquired through the Navigators Group book of business, loss and ALAE are reviewed on a combined basis. Reserves for ULAE are determined using the expected cost per claim year and the anticipated claim closure pattern as well as the ratio of paid ULAE to paid losses.

The recorded reserve for losses and loss adjustment expenses represents the actuarial best estimate of the ultimate settlement amount of unpaid losses and loss adjustment expenses. In applying judgment, actuaries select the best estimate after considering the estimates derived from a number of actuarial

methods, giving more weight to those methods deemed more predictive of ultimate unpaid losses and loss adjustment expenses. The Company does not produce a statistical range or confidence interval of reserve estimates and, since reserving methods with more credibility are given greater weight, the selected best estimate may differ from the mid-point of the various estimates produced by the actuarial methods used.

Cumulative number of reported claims

For most property and casualty lines, claim counts represent the number of claim features on a reported claim where a claim feature is each separate coverage for each claimant affected by the claim event. For example, one car accident that results in two bodily injury claims and one automobile damage liability claim would be counted as three claims within the personal automobile liability triangle. Similarly, a fire that impacts one commercial building may result in multiple claim features due to the potential for claims related to business interruption, structural damage, and loss of the physical contents of the building. Claim features that result in no paid losses are included in the reported claim counts. For some property and casualty lines, such as marine and assumed reinsurance, a claim count represents each reported claim regardless of the number of features. For assumed bordereau business and business written on binders, one claim count is posted for each bordereau received, which could account for multiple claims.

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			Index to Consolidated Financial Statements and Schedules
Table of Contents			Note 12 - Reserves for Unpaid Loss and Loss Adjustment Expenses

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance [1]
			(Unaudited)
Reserve Line			1st Year			2nd Year			3rd Year			4th Year			5th Year			6th Year			7th Year			8th Year			9th Year			10th Year
Workers' compensation			15.1		%	18.7		%	12.3		%	8.2		%	5.4		%	4.0		%	2.6		%	2.1		%	1.4		%	1.3		%
General liability			2.9		%	7.8		%	14.2		%	18.2		%	16.6		%	11.2		%	6.9		%	4.5		%	3.1		%	4.8		%
Marine			25.3		%	31.4		%	17.5		%	8.0		%	6.6		%	3.4		%	1.9		%	3.1		%	—		%	0.7		%
Package business			37.4		%	21.8		%	10.4		%	8.6		%	6.2		%	3.2		%	2.1		%	1.2		%	0.4		%	0.3		%
Commercial property			53.5		%	30.6		%	7.7		%	3.0		%	1.0		%	0.5		%	0.1		%	(0.1		%)	(0.1		%)	—		%
Commercial automobile liability			15.8		%	20.3		%	20.6		%	17.6		%	11.4		%	4.5		%	2.7		%	0.8		%	0.5		%	0.4		%
Commercial automobile physical damage			88.0		%	9.7		%	(0.4		%)
Professional liability			5.3		%	18.4		%	18.7		%	14.3		%	10.8		%	7.6		%	5.9		%	1.1		%	1.6		%	0.7		%
Bond			12.2		%	22.2		%	10.3		%	4.6		%	(0.2		%)	(0.5		%)	4.4		%	1.8		%	(0.2		%)	(1.6		%)
Assumed Reinsurance			35.2		%	36.9		%	9.1		%	4.9		%	7.0		%	2.4		%	1.0		%	0.3		%	0.3		%	0.1		%
Personal automobile liability			34.7		%	33.3		%	16.0		%	7.7		%	3.1		%	1.2		%	0.5		%	0.2		%	0.2		%	—		%
Personal automobile physical damage			95.7		%	2.7		%	(0.1		%)
Homeowners			70.7		%	23.5		%	1.4		%	0.3		%	0.6		%	0.3		%	0.1		%	0.1		%	—		%	—		%

[1]Negative percentages are generally due to salvage, subrogation or other recoveries.

|GROUP LIFE, DISABILITY AND ACCIDENT PRODUCTS

Rollforward of Liabilities for Unpaid Losses and Loss Adjustment Expenses

			For the years ended December 31,
			2021			2020			2019
Beginning liabilities for unpaid losses and loss adjustment expenses, gross			$	8,233		$	8,256		$	8,445
Reinsurance recoverables [1]			237			247			239
Beginning liabilities for unpaid losses and loss adjustment expenses, net			7,996			8,009			8,206
Provision for unpaid losses and loss adjustment expenses
Current incurral year			5,021			4,511			4,385
Prior year's discount accretion			201			209			219
Prior incurral year development [2]			(458)			(445)			(410)
Total provision for unpaid losses and loss adjustment expenses [3]			4,764			4,275			4,194
Payments
Current incurral year			(2,631)			(2,288)			(2,277)
Prior incurral years			(2,164)			(2,000)			(2,114)
Total payments			(4,795)			(4,288)			(4,391)
Ending liabilities for unpaid losses and loss adjustment expenses, net			7,965			7,996			8,009
Reinsurance recoverables			245			237			247
Ending liabilities for unpaid losses and loss adjustment expenses, gross			$	8,210		$	8,233		$	8,256

[1] Includes a cumulative effect adjustment of $(1) representing an adjustment to the ACL recorded on adoption of accounting guidance for credit losses on January 1, 2020. See Note 1 - Basis of Presentation and Significant Accounting Policies.

*[2]*Prior incurral year development represents the change in estimated ultimate incurred losses and loss adjustment expenses for prior incurral years on a discounted basis.

*[3]*Includes unallocated loss adjustment expenses of $179, $178 and $178 for the years ended December 31, 2021, 2020 and 2019, respectively, that are recorded in insurance operating costs and other expenses in the Consolidated Statements of Operations.

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			Index to Consolidated Financial Statements and Schedules
Table of Contents			Note 12 - Reserves for Unpaid Loss and Loss Adjustment Expenses

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

Group Life, Disability and Accident Products Reserves, Net of Reinsurance, that are Discounted

			For the years ended December 31,
			2021									2020									2019
Liability for unpaid losses and loss adjustment expenses, at undiscounted amounts			$	8,176								$	8,380								$	8,636
Amount of discount			(1,304)									(1,353)									(1,401)
Carrying value of liability for unpaid losses and loss adjustment expenses			$	6,872								$	7,027								$	7,235
Weighted average discount rate			3.3								%	3.4								%	3.4								%
Range of discount rate			2.1		%	-			8.0		%	2.1		%	-			8.0		%	2.1		%	-			8.0		%

Reserves are discounted at rates in effect at the time claims were incurred, ranging from 2.1% for life and disability reserves acquired from Aetna based on interest rates in effect at the acquisition date of November 1, 2017, to 8.0% for the Company’s pre-acquisition reserves for incurral year 1990, and vary by product. Prior year's discount accretion has been calculated as the average reserve balance for the year times the weighted average discount rate.

2021 re-estimates of prior incurral year reserves

Group disability- Prior period reserve estimates decreased by approximately $380 largely driven by group long-term disability claim incidence lower than prior assumptions together with strong recoveries on prior incurral year claims, and by a New York Paid Family Leave program refund.

Group life and accident (including group life premium waiver)- Prior period reserve estimates decreased by approximately $65 largely driven by lower-than-previously expected claim incidence in both group life premium waiver and group accidental death and dismemberment.

Supplemental Accident & Health- Prior period reserve estimates decreased by approximately $10 driven by lower-than-previously expected claim incidence during the pandemic.

2020 re-estimates of prior incurral year reserves

Group disability- Prior period reserve estimates decreased by approximately $365 largely driven by group long-term disability lower claim incidence and higher recoveries on prior incurral year claims, and a refund on the New York Paid Family Leave program.

Group life and accident (including group life premium waiver)- Prior period reserve estimates decreased by approximately $65 largely driven by lower-than-previously expected claim incidence in group life premium waiver.

Supplemental Accident & Health- Prior period reserve estimates decreased by approximately $15 driven by lower-than-expected emergence of prior year claims, especially for voluntary critical Illness and voluntary accident products.

2019 re-estimates of prior incurral year reserves

Group disability- Prior period reserve estimates decreased by approximately $340 largely driven by group long-term disability claim incidence lower than prior assumptions and strong recoveries on prior incurral year claims, including the impact of updating Long-term Disability ("LTD") recovery probabilities to be based on more recent experience. New York Paid Family Leave also experienced favorable claim emergence including an experience refund.

Group life and accident (including group life premium waiver)- Prior period reserve estimates decreased by approximately $60 largely driven by lower-than-previously expected claim incidence in group life premium waiver.

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			Index to Consolidated Financial Statements and Schedules
Table of Contents			Note 12 - Reserves for Unpaid Loss and Loss Adjustment Expenses

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

Reconciliation of Loss Development to Liability for Unpaid Losses and Loss Adjustment Expenses as of December 31, 2021

			Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance															Subtotal
Reserve Line			Cumulative Incurred for Incurral Years Displayed in Triangles			Cumulative Paid for Incurral Years Displayed in Triangles			Unpaid for Incurral Years not Displayed in Triangles			Unpaid Unallocated Loss Adjustment Expenses, Net of Reinsurance			Discount			Unpaid Losses and Loss Adjustment Expenses, Net of Reinsurance			Reinsurance and Other Recoverables			Liability for Unpaid Losses and Loss Adjustment Expenses
Group long-term disability			$	14,113		$	(8,219)		$	1,546		$	189		$	(1,192)		$	6,437		$	234		$	6,671
Group life and accident, excluding premium waiver			6,323			(5,644)			163			4			(18)			828			5			833
Group short-term disability									124			5			—			129			—			129
Group life premium waiver									620			11			(94)			537			1			538
Group supplemental health									34			—						34			5			39
Total Group Benefits			$	20,436		$	(13,863)		$	2,487		$	209		$	(1,304)		$	7,965		$	245		$	8,210

The following loss triangles present historical loss development for incurred and paid claims by the year the insured claim occurred, referred to as the incurral year. Triangles are limited to the number of years for which claims incurred typically remain

outstanding, not exceeding ten years. Short-tail lines, which represent claims generally expected to be paid within a few years, have three years of claim development displayed.

Group Long-Term Disability

Undiscounted Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance
						For the years ended December 31,
						(Unaudited)
Incurral Year			2012			2013			2014			2015			2016			2017			2018			2019			2020			2021			IBNR Reserves			Claims Reported
2012			$	1,829		$	1,605		$	1,539		$	1,532		$	1,530		$	1,515		$	1,504		$	1,486		$	1,479		$	1,474		$	—		35,814
2013						1,660			1,479			1,429			1,429			1,416			1,413			1,399			1,385			1,378			—			30,757
2014									1,636			1,473			1,430			1,431			1,431			1,408			1,395			1,389			—			31,927
2015												1,595			1,442			1,422			1,420			1,401			1,385			1,380			—			32,727
2016															1,651			1,481			1,468			1,437			1,417			1,409			—			33,301
2017																		1,597			1,413			1,358			1,316			1,304			1			30,902
2018																					1,647			1,387			1,309			1,277			1			28,403
2019																								1,650			1,424			1,327			5			27,375
2020																											1,686			1,407			29			25,503
2021																														1,768			881			17,132
Total																														$	14,113

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			Index to Consolidated Financial Statements and Schedules
Table of Contents			Note 12 - Reserves for Unpaid Loss and Loss Adjustment Expenses

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance
						For the years ended December 31,
						(Unaudited)
Incurral Year			2012			2013			2014			2015			2016			2017			2018			2019			2020			2021
2012			$	108		$	483		$	708		$	835		$	933		$	1,014		$	1,080		$	1,138		$	1,185		$	1,227
2013						102			443			664			791			881			954			1,016			1,067			1,113
2014									103			448			675			801			884			960			1,025			1,079
2015												108			460			687			806			891			962			1,025
2016															112			479			705			819			907			981
2017																		109			452			658			757			842
2018																					105			447			639			743
2019																								101			454			650
2020																											100			458
2021																														101
Total																														$	8,219

Group Life and Accident, excluding Premium Waiver

Undiscounted Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance
			For the years ended December 31,
			(Unaudited)
Incurral Year			2019			2020			2021			IBNR Reserves			Claims Reported
2019			$	1,902		$	1,866		$	1,867		$	9		57,811
2020						2,072			2,072			21			60,509
2021									2,384			467			51,507
Total									$	6,323

Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance
			For the years ended December 31,
			(Unaudited)
Incurral Year			2019			2020			2021
2019			$	1,471		$	1,830		$	1,847
2020						1,524			2,033
2021									1,764
Total									$	5,644

Group life, disability and accident reserves, including IBNR

The majority of Group Benefits’ reserves are for LTD claimants who are known to be disabled and are currently receiving benefits. A Disabled Life Reserve ("DLR") is calculated for each

LTD claim. The DLR for each claim is the expected present value of all estimated future benefit payments and includes estimates of claim recovery, investment yield, and offsets from other income, including offsets from Social Security benefits and workers’ compensation. Estimated future benefit payments represent the monthly income benefit that is paid until recovery, death or expiration of benefits. Claim recoveries are estimated based on claim characteristics such as age and diagnosis and represent an estimate of benefits that will terminate, generally as a result of the claimant returning to work or being deemed able to return to work. The DLR also includes a liability for payments to claimants who have not yet been approved for LTD. In these cases, the present value of future benefits is reduced for the likelihood of claim denial based on Company experience. For claims recently closed due to recovery, a portion of the DLR is retained for the possibility that the claim reopens upon further evidence of disability. In addition, a reserve for estimated unpaid claim expenses is included in the DLR.

For incurral years with IBNR claims, estimates of ultimate losses are made by applying completion factors to the dollar amount of claims reported or expected depending on the market segment. IBNR represents estimated ultimate losses less both DLR and cumulative paid amounts for all reported claims. Completion factors are derived using standard actuarial techniques using triangles that display historical claim count emergence by incurral month. These estimates are reviewed for reasonableness and are adjusted for current trends and other factors expected to cause a change in claim emergence. The IBNR includes an estimate of unpaid claim expenses, including a provision for the cost of initial set-up of the claim once reported.

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			Index to Consolidated Financial Statements and Schedules
Table of Contents			Note 12 - Reserves for Unpaid Loss and Loss Adjustment Expenses

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

For all products, including LTD, there is a period generally ranging from two to twelve months, depending on the product and market segment, where emerged claim information for an incurral year is not yet credible enough to be a basis for an IBNR projection. In these cases, the ultimate losses and allocated loss adjustment expenses are estimated using earned premium multiplied by an expected loss ratio.

The Company also records reserves for future death benefits under group term life policies that provide for premiums to be waived in the event the insured is unable to work due to disability and has satisfied an elimination period, which is typically nine months (premium waiver reserves). The death benefit reserve for these group life premium waiver claims is estimated for a known disabled claimant equal to the present value of expected future cash outflows (typically a lump sum face amount payable at death plus claim expenses) with separate estimates for claimant recovery (when no death benefit is payable) and for death before recovery or benefit expiry (when death benefit is payable). The IBNR for premium waiver death benefits is estimated with standard actuarial development methods.

In addition, the Company also records reserves for group term life, accidental death & dismemberment, short term disability, and other group products that have short claim payout periods. For these products, reserves are determined using paid or reported actuarial development methods. The resulting claim triangles produce a completion pattern and estimate of ultimate loss. IBNR for these lines of business equals the estimated ultimate losses and loss adjustment expenses less the amount of paid or reported claims depending on whether the paid or reported development method was used. Estimates are reviewed for reasonableness and are adjusted for current trends or other factors that affect the development pattern.

Cumulative number of reported claims

For group life, disability and accident coverages, claim counts include claims that are approved, pending approval and terminated and exclude denied claims. Due to the nature of the claims, one claimant represents one event.

Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance
			(Unaudited)
			1st Year			2nd Year			3rd Year			4th Year			5th Year			6th Year			7th Year			8th Year			9th Year			10th Year
Group long-term disability			7.5		%	25.8		%	15.7		%	8.5		%	6.3		%	5.4		%	4.5		%	3.8		%	3.3		%	2.8		%
Group life and accident, excluding premium waiver			75.4		%	21.9		%	1.0		%

13. RESERVE FOR FUTURE POLICY BENEFITS

Changes in Reserves for Future Policy Benefits [1]
			For the years ended December 31,
			2021						2020
Beginning liability balance			$	638					$	635
Incurred			61						85
Paid			(94)						(85)
Change in unrealized investment gains and losses			(9)						3
Ending liability balance			$	596					$	638
Ending reinsurance recoverable asset			$	22					$	28

*[1]*Reserve for future policy benefits includes paid-up life insurance and whole-life policies resulting from conversion from group life policies included within the Group Benefits segment and reserves for run-off structured settlement and terminal funding agreement liabilities, which are in the Corporate category.

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			Index to Consolidated Financial Statements and Schedules
Table of Contents			Note 14 - Debt

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

14. DEBT

The Company’s long-term debt securities are issued by Hartford Financial Services Group, Inc. ("HFSG Holding Company"), are unsecured obligations of HFSG Holding Company, and rank on a parity with all other unsecured and unsubordinated indebtedness of HFSG Holding Company.

Debt is carried net of discount and issuance cost.

Interest expense on debt is included in the Corporate category for segment reporting.

Long-term Debt by Issuance

			As of December 31,
			2021			2020
Revolving Credit Facilities			$	—		$	—
Senior Notes and Debentures
2.8% Notes, due 2029			600			600
5.95% Notes, due 2036			300			300
6.625% Notes, due 2040			295			295
6.1% Notes, due 2041			409			409
6.625% Notes, due 2042			178			178
4.3% Notes, due 2043			300			300
4.4% Notes, due 2048			500			500
3.6% Notes, due 2049			800			800
2.9% Notes, due 2051			600			—
Junior Subordinated Debentures
7.875% Notes, due 2042			600			600
3 Month LIBOR + 2.125% Notes, due 2067 [1]			500			500
Total Notes and Debentures			5,082			4,482
Unamortized discount and debt issuance cost [2]			(138)			(130)
Total Debt			4,944			4,352
Less: Current maturities			—			—
Long-Term Debt			$	4,944		$	4,352

*[1]*In April 2017, the Company entered into an interest rate swap agreement expiring February 15, 2027 to effectively convert the variable interest payments for this debenture into fixed interest payments of approximately 4.39%.

*[2]*This amount includes unamortized discount of $74 and $75 as of December 31, 2021 and 2020, respectively, on the 6.1% Notes, due 2041.

The effective interest rate on the 6.1% senior notes due 2041 is 7.9%. The effective interest rate on the remaining notes does not differ materially from the stated rate. The Company incurred interest expense of $234, $236 and $259 on debt for the years ended December 31, 2021, 2020 and 2019, respectively.

Shelf Registrations

On May 17, 2019, the Company filed with the Securities and Exchange Commission an automatic shelf registration statement (Registration No. 333-231592) for the potential offering and sale of debt and equity securities. The registration statement allows for the following types of securities to be offered: debt securities, junior subordinated debt securities, guarantees, preferred stock,

common stock, depositary shares, warrants, stock purchase contracts, and stock purchase units. In that The Hartford is a well-known seasoned issuer, as defined in Rule 405 under the Securities Act of 1933, the registration statement went effective immediately upon filing and The Hartford may offer and sell an unlimited amount of securities under the registration statement during the three-year life of the registration statement.

Senior Notes

On September 21, 2021, The Hartford issued $600 of 2.9% senior notes (“2.9% Notes”) due September 15, 2051 for net proceeds of approximately $588, after deducting underwriting discounts and expenses from the offering. Interest is payable semi-annually in arrears on March 15 and September 15, commencing March 15, 2022. The Hartford, at its option, can redeem the 2.9% Notes at any time, in whole or part, at a redemption price equal to the greater of 100% of the principal amount being redeemed or a make-whole amount based on a comparable maturity US Treasury plus 20 basis points, plus any accrued and unpaid interest, except the 2.9% Notes may be redeemed at par within six months of maturity.

On March 30, 2020, The Hartford repaid at maturity the $500 principal amount of its 5.5% senior notes.

In the Navigators Group acquisition, the Company assumed $265 par value 5.75% Senior notes due on October 15, 2023 with a fair value of $284 as of the acquisition date.

On August 19, 2019, The Hartford issued $600 of 2.8% senior notes (“2.8% Notes”) due August 19, 2029 and $800 of 3.6% senior notes (“3.6% Notes”) due August 19, 2049 for net proceeds of approximately $1.38 billion, after deducting underwriting discounts and expenses. Under both senior note issuances, interest is payable semi-annually in arrears on August 19 and February 19, commencing February 19, 2020. The Hartford, at its option, can redeem the 2.8% Notes and the 3.6% Notes at any time, in whole or part, at a redemption price equal to the greater of 100% of the principal amount being redeemed or a make-whole amount based on a comparable maturity US Treasury rate plus a basis point spread, plus any accrued and unpaid interest, except the make-whole amount is not applicable within the final three months of maturity for the 2.8% Notes and the final six months of maturity for the 3.6% Notes. The spread over the comparable maturity US Treasury rates for determining the make-whole amount is 20 and 25 basis points for the 2.8% Notes and 3.6% Notes, respectively.

After receiving proceeds from the issuance of the 2.8% Notes and 3.6% Notes, in third quarter 2019, The Hartford repaid $265 of 5.75% senior notes due 2023 that had been assumed in the Navigators Group acquisition and $800 of 5.125% senior notes due 2022 of the Hartford Financial Services Group, Inc., and recognized a loss on extinguishment of debt of $90.

On January 15, 2019, The Hartford repaid at maturity the $413 principal amount of its 6.0% senior notes.

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			Index to Consolidated Financial Statements and Schedules
Table of Contents			Note 14 - Debt

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

Junior Subordinated Debentures

Junior Subordinated Debentures by Issuance as of December 31, 2021

Issue			7.875% Debentures									3 Month LIBOR + 2.125%
Face Value			$	600								$	500
Interest Rate [1]			7.875		%	[2]									N/A			[3]
Call Date			April 15, 2022									February 15, 2022			[4]
Interest Rate Subsequent to Call Date [2]			3 Month LIBOR + 5.596%									3 Month LIBOR + 2.125%			[5]
Final Maturity			April 15, 2042									February 12, 2067

*[1]*Interest rate in effect until call date.

*[2]*Payable quarterly in arrears.

*[3]*Debentures were issued on the original call date of February 15, 2017. The interest rate is variable and resets quarterly.

*[4]*Although the original call date was February 15, 2017, a Replacement Capital Covenant associated with the debenture prohibits the Company from redeeming all or any portion of the notes on or prior to February 15, 2022, unless consent from covered bondholders is obtained.

*[5]*In April 2017, the company entered into an interest rate swap agreement expiring February 15, 2027 to effectively convert the interest payments for the 3 Month LIBOR + 2.125% debenture into fixed interest payments of approximately 4.39%.

The debentures are unsecured, subordinated and junior in right of payment and upon liquidation to all of the Company’s existing and future senior indebtedness. In addition, the debentures are effectively subordinated to all of the Company’s subsidiaries’ existing and future indebtedness and other liabilities, including obligations to policyholders. The debentures do not limit the Company’s or the Company’s subsidiaries’ ability to incur additional debt, including debt that ranks senior in right of payment and upon liquidation to the debentures.

The Company has the right to defer interest payments for up to a consecutive ten years without giving rise to an event of default. Deferred interest will continue to accrue and will accrue additional interest at the then applicable interest rate. If the Company defers interest payments, the Company generally may not make payments on or redeem or purchase any shares of its capital stock or any of its debt securities or guarantees that rank upon liquidation, dissolution or winding up equally with or junior to the debentures, subject to certain limited exceptions.

The 7.875% and 3 Month LIBOR plus 2.125% debentures may be redeemed in whole prior to the call date upon certain tax or rating agency events, at a price equal to the greater of 100% of the principal amount being redeemed and the applicable make-whole amount plus any accrued and unpaid interest. The Company may elect to redeem the 7.875% and 3 Month LIBOR plus 2.125% debentures in whole or in part on or after the call date for the principal amount being redeemed plus accrued and unpaid interest to the date of redemption.

In connection with the offering of the 3 Month LIBOR plus 2.125% debenture, the Company entered into a Replacement Capital Covenant ("RCC") for the benefit of holders of one or more designated series of the Company's indebtedness, initially the Company's 4.3% notes due 2043. Under the terms of the

RCC, if the Company redeems the debenture any time prior to February 12, 2047 (or such earlier date on which the RCC terminates by its terms) it can only do so with the proceeds from the sale of certain qualifying replacement securities. The RCC also prohibits the Company from redeeming all or any portion of the notes on or prior to February 15, 2022.

In July 2017, the U.K. Financial Conduct Authority ("FCA") announced that by the end of 2021 it intended to stop persuading or compelling banks to report information used to set LIBOR. On March 5, 2021, the FCA announced that publication of certain LIBOR settings in currencies other than U.S. dollars would cease immediately after December 31, 2021, and that publication of U.S. dollar LIBOR on a representative basis would cease for the one-week and two-month settings immediately after December 31, 2021 and for the remaining U.S. dollar settings immediately after June 30, 2023. The Company continues to monitor and assess the potential impacts of the discontinuation of LIBOR on its outstanding junior subordinated debentures.

Long-Term Debt

Long-term Debt Maturities (at par value) as of December 31, 2021

2022 - Current maturities			$	—
2023			$	—
2024			$	—
2025			$	—
2026			$	—
Thereafter			$	5,082

Revolving Credit Facility

In 2018, The Hartford entered into a $750 senior unsecured five-year revolving credit facility (the "Credit Facility"), with an expiration date of March 29, 2023. On October 27, 2021, The Hartford amended and restated the Credit Facility (as amended, the “2021 Credit Facility”) which, among other changes, extends the term of the facility through October 27, 2026, includes provisions for determining LIBOR successor rates, and resets the level of The Hartford’s minimum consolidated net worth financial covenant to $11.25 billion, excluding AOCI. The 2021 Credit Facility provides up to $750 of unsecured credit, including $100 available to support letters of credit. Under the 2021 Credit Facility:

• Revolving loans may be in multiple currencies.

• U.S. dollar loans will bear interest at a floating rate equivalent to an indexed rate that varies depending on the type of borrowing plus a basis point spread based on The Hartford's credit rating and will mature no later than October 27, 2026.

• Letters of credit bear a fee based on The Hartford's credit rating and expire no later than October 27, 2027.

The 2021 Credit Facility limits the ratio of senior debt to capitalization, excluding AOCI, at 35% and includes other customary covenants. The 2021 Credit Facility is for general corporate purposes.

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			Index to Consolidated Financial Statements and Schedules
Table of Contents			Note 14 - Debt

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

As of December 31, 2021, no borrowings were outstanding, no letters of credit were issued under the 2021 Credit Facility and the Company was in compliance with all financial covenants.

Lloyd's Letter of Credit Facilities

As a result of the acquisition of Navigators Group in 2019, The Hartford had two letter of credit facility agreements: the Club Facility and the Bilateral Facility, which were used to provide a portion of the capital requirements at Lloyd's. As of September 30, 2020, uncollateralized letters of credit with an aggregate face amount of $165 and £60 million, or $78, were outstanding under the Club Facility and £18 million, or $23, was outstanding under the $25 Bilateral Facility. These agreements terminated on November 5, 2020.

On November 5, 2020, The Hartford entered into a new committed credit facility agreement with a syndicate of lenders (the “Club Facility”). The Club Facility has two tranches with one tranche extending a $104 commitment and the other tranche extending a £85 million ($115 as of December 31, 2021) commitment. In addition, on November 5, 2020, The Hartford entered into a new non-committed $25 credit facility with a lender (the “Bilateral Facility”). The term of both of these facilities is two years. The purpose of these facilities is to issue letters of credit that may be treated as Funds at Lloyd’s to support underwriting capacity provided by the Navigators Corporate Underwriters Limited to the Lloyd’s Syndicate 1221 for the 2021 and 2022 underwriting years of account (and prior open years). As of December 31, 2021, letters of credit with an aggregate face amount of $104 and £68 million, or $92, were outstanding under the Club Facility and no letters of credit were outstanding under the Bilateral Facility.

Among other covenants, the Club Facility and Bilateral Facility contain financial covenants regarding The Hartford’s consolidated net worth and financial leverage and that limit the amount of letters of credit that can support Funds at Lloyd’s, consistent with Lloyd’s requirements. As of December 31, 2021, The Hartford was in compliance with all financial covenants of both facilities.

Commercial Paper

On December 17, 2020, the Board of Directors terminated the HFSG Holding Company's commercial paper program, under which the maximum borrowings available were $750.

Collateralized Advances with Federal Home Loan Bank of Boston

The Company’s subsidiaries, Hartford Fire Insurance Company (“Hartford Fire”) and HLA, are members of the Federal Home Loan Bank of Boston ("FHLBB"). Membership allows these subsidiaries access to collateralized advances, which may be short- or long-term with fixed or variable rates. FHLBB membership required the purchase of member stock and requires additional member stock ownership of 3% or 4% of any amount borrowed. Acceptable forms of collateral include real estate backed fixed maturities and mortgage loans and the amount of advances that can be taken is limited to a percentage of the fair value of the assets that ranges from a high of 97% for US government-backed fixed maturities maturing within 3 years to a low of 40% for A-rated commercial mortgage-backed fixed maturities maturing in 5 years or more. In its consolidated

balance sheets, The Hartford presents the liability for advances taken based on use of the funds with advances for general corporate purposes presented in short- or long-term debt and advances to earn incremental investment income presented in other liabilities, consistent with other collateralized financing transactions such as securities lending and repurchase agreements. The Connecticut Department of Insurance permits Hartford Fire and HLA to pledge up to $1.3 billion and $0.6 billion in qualifying assets, respectively, without prior approval, to secure FHLBB advances in 2022. The pledge limit is determined quarterly based on statutory admitted assets and capital and surplus of Hartford Fire and HLA, respectively.

As of December 31, 2021, there were no advances outstanding under the FHLBB facility.

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			Index to Consolidated Financial Statements and Schedules
Table of Contents			Note 15 - Commitments and Contingencies

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

15. COMMITMENTS AND CONTINGENCIES

Management evaluates each contingent matter separately. A loss is recorded if probable and reasonably estimable. Management establishes liabilities for these contingencies at its “best estimate,” or, if no one number within the range of possible losses is more probable than any other, the Company records an estimated liability at the low end of the range of losses.

LITIGATION

The Hartford is involved in claims litigation arising in the ordinary course of business, both as a liability insurer defending or providing indemnity for third-party claims brought against insureds and as an insurer defending coverage claims brought against it. The Hartford accounts for such activity through the establishment of unpaid loss and loss adjustment expense reserves. Subject to the uncertainties related to sexual molestation and sexual abuse claims discussed in Note 12, Reserve for Unpaid Losses and Loss Adjustment Expenses, and in the following discussion under the caption “COVID-19 Pandemic Business Income Insurance Litigation” and under the caption “Run-off Asbestos and Environmental Claims,” management expects that the ultimate liability, if any, with respect to such ordinary-course claims litigation, after consideration of provisions made for potential losses and costs of defense, will not be material to the consolidated financial condition, results of operations or cash flows of The Hartford.

The Hartford is also involved in other kinds of legal actions, some of which assert claims for substantial amounts. In addition to the matter described below, these actions include putative class actions seeking certification of a state or national class. Such putative class actions have alleged, for example, underpayment of claims or improper sales or underwriting practices in connection with various kinds of insurance policies, such as personal and commercial automobile, property, disability, life and inland marine. The Hartford also is involved in individual actions in which punitive damages are sought, such as claims alleging bad faith in the handling of insurance claims or other allegedly unfair or improper business practices. Like many other insurers, The Hartford also has been joined in actions by asbestos plaintiffs asserting, among other things, that insurers had a duty to protect the public from the dangers of asbestos and that insurers committed unfair trade practices by asserting defenses on behalf of their policyholders in the underlying asbestos cases. Management expects that the ultimate liability, if any, with respect to such lawsuits, after consideration of provisions made for estimated losses, will not be material to the consolidated financial condition of The Hartford. Nonetheless, given the large or indeterminate amounts sought in certain of these actions, and the inherent unpredictability of litigation, the outcome in certain matters could, from time to time, have a material adverse effect on the Company’s results of operations or cash flows in particular quarterly or annual periods.

COVID-19 Pandemic Business Income Insurance Litigation

Like many others in the property and casualty insurance industry, beginning in April 2020, various direct and indirect subsidiaries of the Company (collectively the "Hartford Writing

Companies”), and in some instances the Company itself, have been served as defendants in lawsuits seeking insurance coverage under commercial insurance policies issued by the Hartford Writing Companies for alleged losses resulting from the shutdown or suspension of their businesses due to the spread of COVID-19. More than 260 such lawsuits have been filed, of which more than 60 purport to be filed on behalf of broad nationwide or statewide classes of policyholders. These lawsuits have been filed in state and federal courts in roughly 34 states. Although the allegations vary, the plaintiffs generally seek a declaration of insurance coverage, damages for breach of contract in unspecified amounts, interest, and attorneys' fees. Many of the lawsuits also allege that the insurance claims were denied in bad faith or otherwise in violation of state laws and seek extra-contractual or punitive damages. Some of the lawsuits also allege that the Hartford Writing Companies engaged in unfair business practices by collecting or retaining excess premium.

The Company and its subsidiaries deny the allegations and continue to vigorously defend these suits. The Hartford Writing Companies maintain that they have no coverage obligations with respect to these suits for business income allegedly lost by the plaintiffs due to the COVID-19 pandemic based on the clear terms of the applicable insurance policies. Although the policy terms vary depending, among other things, upon the size, nature, and location of the policyholder’s business, in general, the claims at issue in these lawsuits were denied because the claimant identified no direct physical damage or loss to property at the insured premises, and the governmental orders that led to the complete or partial shutdown of the business were not due to the existence of any direct physical loss or damage in the immediate vicinity of the insured premises and did not prohibit access to the insured premises, as required by the terms of the insurance policies. In addition, the vast majority of the policies at issue expressly exclude from coverage any loss caused directly or indirectly by the presence, growth, proliferation, spread or activity of a virus, subject to a narrow set of exceptions not applicable in connection with this pandemic, and contain a pollution and contamination exclusion that, among other things, expressly excludes from coverage any loss caused by material that threatens human health or welfare.

In addition to the inherent difficulty in predicting litigation outcomes, the COVID-19 pandemic business income coverage lawsuits present numerous uncertainties and contingencies that are not yet fully known, including how many policyholders will ultimately file claims, the number of lawsuits that will be filed, the extent to which any state or nationwide classes will be certified, and the size and scope of any such classes. The legal theories advocated by plaintiffs vary significantly by case as do the state laws that govern the policy interpretation. These lawsuits are at various stages of litigation; some are in the earliest stages of litigation, many complaints are in the process of being amended, some have been dismissed voluntarily and may be refiled, while others have been dismissed through rulings in favor of the Hartford Writing Companies. Discovery is underway in certain single plaintiff cases and class actions. More than 40 policyholders have appealed dismissals in favor of the Hartford Writing Companies. The Hartford Writing Companies' first appellate decision was received on December 27, 2021 when

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			Index to Consolidated Financial Statements and Schedules
Table of Contents			Note 15 - Commitments and Contingencies

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

the Second Circuit Court of Appeals affirmed a trial court ruling in Sentinel Ins. Co. Ltd.'s favor. The remainder of the Hartford Writing Companies' appeals are at various stages of the process.

In addition, business income calculations depend upon a wide range of factors that are particular to the circumstances of each individual policyholder and, here, almost none of the plaintiffs have submitted proofs of loss or otherwise quantified or factually supported any allegedly covered loss, and, in any event, the Company’s experience shows that demands for damages often bear little relation to a reasonable estimate of potential loss. Accordingly, management cannot now reasonably estimate the possible loss or range of loss, if any. Nonetheless, given the large number of claims and potential claims, the indeterminate amounts sought, and the inherent unpredictability of litigation, it is possible that adverse outcomes, if any, in the aggregate, could have a material adverse effect on the Company’s consolidated operating results.

Run-off Asbestos and Environmental Claims

The Company continues to receive A&E claims. Asbestos claims relate primarily to bodily injuries asserted by people who came in contact with asbestos or products containing asbestos. Environmental claims relate primarily to pollution and related clean-up costs.

The vast majority of the Company's exposure to A&E relates to Run-off A&E, reported within the P&C Other Operations segment. In addition, since 1986, the Company has written asbestos and environmental exposures under general liability policies and pollution liability under homeowners policies, which are reported in the Commercial Lines and Personal Lines segments.

Prior to 1986, the Company wrote several different categories of insurance contracts that may cover A&E claims. First, the Company wrote primary policies providing the first layer of coverage in an insured’s liability program. Second, the Company wrote excess and umbrella policies providing higher layers of coverage for losses that exhaust the limits of underlying coverage. Third, the Company acted as a reinsurer assuming a portion of those risks assumed by other insurers writing primary, excess, umbrella and reinsurance coverages.

Significant uncertainty limits the ability of insurers and reinsurers to estimate the ultimate reserves necessary for unpaid gross losses and expenses related to environmental and particularly asbestos claims. The degree of variability of gross reserve estimates for these exposures is significantly greater than for other more traditional exposures.

In the case of the reserves for asbestos exposures, factors contributing to the high degree of uncertainty include inadequate loss development patterns, plaintiffs’ expanding theories of liability, the risks inherent in major litigation, and inconsistent and emerging legal doctrines with respect to the underlying claims and with respect to the Company's coverage obligations. Furthermore, over time, insurers, including the Company, have experienced significant changes in the rate at which asbestos claims are brought, the claims experience of particular insureds, and the value of claims, making predictions of future exposure from past experience uncertain. Plaintiffs and insureds also

have sought to use bankruptcy proceedings, including “pre-packaged” bankruptcies, to accelerate and increase loss payments by insurers. In addition, some policyholders have asserted new classes of claims for coverages to which an aggregate limit of liability may not apply. Further uncertainties include insolvencies of other carriers, insolvencies of insureds and unanticipated developments pertaining to the Company’s ability to recover reinsurance for A&E claims. Management believes these issues are not likely to be resolved in the near future.

In the case of the reserves for environmental exposures, factors contributing to the high degree of uncertainty include expanding theories of liability and damages against insureds, emerging risks such as PFAS, the risks inherent in major litigation, inconsistent and emerging legal doctrines concerning the existence and scope of coverage for environmental claims, and the scope and level of complexity of the remediation required by regulators.

The reporting pattern for assumed reinsurance claims, including those related to A&E claims, is much longer than for direct claims. In many instances, it takes months or years to determine that the policyholder’s own obligations have been met and how the reinsurance in question may apply to such claims. The delay in reporting reinsurance claims and exposures adds to the uncertainty of estimating the related reserves.

It is also not possible to predict changes in the legal and legislative environment and their effect on the future development of A&E claims.

Given the factors described above, the Company believes the actuarial tools and other techniques it employs to estimate the ultimate cost of claims for more traditional kinds of insurance exposure are less precise in estimating reserves for A&E exposures. For this reason, the Company principally relies on exposure-based analysis to estimate the ultimate costs of these claims, both gross and net of reinsurance, and regularly evaluates new account information in assessing its potential A&E exposures. The Company supplements this exposure-based analysis with evaluations of the Company’s historical direct net loss and expense paid and reported experience, and net loss and expense paid and reported experience by calendar and/or report year, to assess any emerging trends, fluctuations or characteristics suggested by the aggregate paid and reported activity.

While the Company believes that its current A&E reserves are appropriate, significant uncertainties limit the ability of insurers and reinsurers to estimate the ultimate reserves necessary for unpaid losses and related expenses. The ultimate liabilities, thus, could exceed the currently recorded reserves, and any such additional liability, while not estimable now, could be material to The Hartford’s consolidated operating results and liquidity.

For its Run-off A&E, as of December 31, 2021, the Company reported $604 of net asbestos and environmental reserves . In addition, the Company has recorded a $365 deferred gain within other liabilities for losses economically ceded to NICO but for which the benefit is not recognized in earnings until later periods. While the Company believes that its current Run-off A&E reserves are appropriate, significant uncertainties limit our ability to estimate the ultimate reserves necessary for unpaid

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			Index to Consolidated Financial Statements and Schedules
Table of Contents			Note 15 - Commitments and Contingencies

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

losses and related expenses. The ultimate liabilities, thus, could exceed the currently recorded reserves, and any such additional liability, while not reasonably estimable now, could be material to The Hartford's consolidated operating results and liquidity.

The Company’s A&E ADC reinsurance agreement with NICO reinsures substantially all A&E reserve development for 2016 and prior accident years, including Run-off A&E and A&E reserves included in Commercial Lines and Personal Lines. The A&E ADC has a coverage limit of $1.5 billion above the Company’s existing net A&E reserves as of December 31, 2016 of approximately $1.7 billion. As of December 31, 2021, the Company has incurred $1,015 in cumulative adverse development on A&E reserves that have been ceded under the A&E ADC treaty with NICO, leaving $485 of coverage available for future adverse net reserve development, if any. Cumulative adverse development of A&E claims for accident years 2016 and prior could ultimately exceed the $1.5 billion treaty limit in which case any adverse development in excess of the treaty limit would be absorbed as a charge to earnings by the Company. In these scenarios, the effect of these charges could be material to the Company’s consolidated operating results and liquidity. For more information on the A&E ADC, refer to Note 12, Reserve for Unpaid Losses and Loss Adjustment Expenses.

UNFUNDED COMMITMENTS

As of December 31, 2021, the Company has outstanding commitments totaling $2.4 billion, of which $1.6 billion is primarily committed to fund limited partnerships and other alternative investments, which may be called by the partnership during the commitment period to fund the purchase of new investments and partnership expenses. The funding of purchase investments in limited partnerships and other alternative investments are at the discretion of the general partner or manager and may be called at any time. Additionally, $185 of the outstanding commitments relate to various funding obligations primarily associated with private debt and equity securities. The remaining outstanding commitments of $679 relate to mortgage loans. Of the $2.4 billion in total outstanding commitments, $382 are related to mortgage loan commitments which the Company can cancel unconditionally.

GUARANTY FUNDS AND OTHER INSURANCE-RELATED ASSESSMENTS

In all states, insurers licensed to transact certain classes of insurance are required to become members of a guaranty fund. In most states, in the event of the insolvency of an insurer writing any such class of insurance in the state, the guaranty funds may assess its members to pay covered claims of the insolvent insurers. Assessments are based on each member's proportionate share of written premiums in the state for the classes of insurance in which the insolvent insurer was engaged. Assessments are generally limited for any year to one or two percent of the premiums written per year depending on the state. Some states permit member insurers to recover assessments paid through surcharges on policyholders or through full or partial premium tax offsets, while other states permit recovery of assessments through the rate filing process.

Liabilities for guaranty fund and other insurance-related assessments are accrued when an assessment is probable, when it can be reasonably estimated, and when the event obligating the Company to pay an imposed or probable assessment has occurred. Liabilities for guaranty funds and other insurance-related assessments are not discounted and are included as part of other liabilities in the Consolidated Balance Sheets. As of December 31, 2021 and 2020 the liability balance was $74 and $83, respectively. As of December 31, 2021 and 2020, there were no premium tax offsets related to guaranty fund or other insurance-related assessments.

Derivative Commitments

Certain of the Company’s derivative agreements contain provisions that are tied to the financial strength ratings, as set by nationally recognized statistical agencies, of the individual legal entity that entered into the derivative agreement. If the legal entity’s financial strength were to fall below certain ratings, the counterparties to the derivative agreements could, in certain instances, terminate the agreements and demand immediate settlement of all outstanding derivative positions traded under each impacted bilateral agreement.

The settlement amount is determined by netting the derivative positions transacted under each agreement. If the termination rights were to be exercised by the counterparties, it could impact the legal entity’s ability to conduct hedging activities by increasing the associated costs and decreasing the willingness of counterparties to transact with the legal entity. The aggregate fair value of all derivative instruments with credit-risk-related contingent features that are in a net liability position as of December 31, 2021 was $52 for which the legal entities have posted collateral of $50 in the normal course of business. Based on derivative contractual terms as of December 31, 2021, a downgrade of the current financial strength ratings by either Moody's or S&P would not require additional assets to be posted as collateral. This requirement could change as a result of changes in our hedging activities or to the extent changes in contractual terms are negotiated. The nature of the additional collateral that we would post, if required, would be primarily in the form of U.S. Treasury bills, U.S. Treasury notes and government agency securities.

GUARANTEES

In the ordinary course of selling businesses or entities to third parties, the Company has agreed to indemnify purchasers for losses arising subsequent to the closing due to breaches of representations and warranties with respect to the business or entity being sold or with respect to covenants and obligations of the Company and/or its subsidiaries. These obligations are typically subject to various time limitations, defined by the contract or by operation of law, such as statutes of limitation. In some cases, the maximum potential obligation is subject to contractual limitations, while in other cases such limitations are not specified or applicable. The Company does not expect to make any payments on these guarantees and is not carrying any liabilities associated with these guarantees.

The Hartford has guaranteed the timely payment of contractual claims under certain life, accident and health and annuity contracts issued by its former life and annuity business with most of the guaranteed contracts issued between 1990 and

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			Index to Consolidated Financial Statements and Schedules
Table of Contents			Note 15 - Commitments and Contingencies

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

1997 (the "Talcott Guarantees"). Upon the sale of the life and annuity business in May 2018, the purchaser indemnified the Company for any liability arising under the guarantees. The Talcott Guarantees cover contractual obligations only but otherwise have no limitation as to maximum potential future payments. Prior to January 1, 2020, the Company had not recorded a liability because the likelihood of any payment under the Talcott Guarantees is remote. Upon adoption of new credit loss guidance on January 1, 2020, the Company estimated a LCL of $25. For further information refer to Note 1 - Basis of Presentation and Significant Accounting Policies.

The LCL is calculated for the estimated amount payable under guaranteed contracts multiplied by the probability of default and the amount of loss given a default. The probability of default is assigned by credit rating of the applicable insurance company that issued the contract and is based on historical insurance industry defaults for liabilities with similar durations estimated through multiple economic cycles. Credit ratings are current and

forward-looking and consider a variety of economic outcomes. Because annuities represent the majority of the contracts issued, the loss given default factors are based on a historical study of annuity policyholder recoveries from insolvent estate assets. The Company's exposure is expected to run off over a period that will include more than one economic cycle.

The Company's evaluation of the required LCL for the Talcott Guarantees considers the current economic environment as well as macroeconomic scenarios similar to the approach used to estimate the ACL for mortgage loans. See Note 6 - Investments. In 2020, the LCL increased to $26 primarily due to the increasing impacts of COVID-19. During 2021, the LCL decreased to $25 primarily reflecting a decrease in the estimated amount payable under guaranteed contracts as well as lessening expected impacts of COVID-19 relative to prior assumptions. The Company has never experienced a loss on financial guarantees of this nature and we believe the risk of loss is remote.

16. EQUITY

Equity Repurchase Program

In December 2020, the Board of Directors authorized an equity repurchase plan for $1.5 billion for the period commencing January 1, 2021 through December 31, 2022. The Board of Directors increased this authorization by $1 billion in April, 2021 and by $500 in October, 2021, bringing the aggregate repurchase authorization to $3.0 billion through December 31, 2022. For the year ended December 31, 2021, The Hartford repurchased $1.7 billion (25.9 million shares) of common stock under this program. The timing of any repurchases of shares under the remaining equity repurchase authorization is dependent upon several factors, including the market price of the Company's securities, the Company's capital position, consideration of the effect of any repurchases on the Company's financial strength or credit ratings, the Company's blackout periods, and other considerations.

Under The Hartford’s previous $1.0 billion share repurchase program authorized by its Board of Directors in February 2019 and which expired on December 31, 2020, the Company repurchased 2.7 million and 3.4 million shares for $150 and $200 during the years ended 2020 and 2019, respectively.

Preferred Stock

The Company has outstanding 13.8 million depositary shares each representing 1/1000th interest in a share of the Company’s 6.0% Series G non-cumulative perpetual preferred stock (“Preferred Stock”) with a liquidation preference of $25,000 per share (equivalent to $25.00 per depositary share). The Preferred Stock is perpetual and has no maturity date. Dividends are recorded when declared. Dividends are payable, if declared, quarterly in arrears on the 15th day of February, May, August and November of each year. If a dividend is not declared and paid or made payable on all outstanding shares of the Preferred Stock for the latest completed dividend period, no dividends may be paid or declared on The Hartford’s common stock and The Hartford may not purchase, redeem, or otherwise acquire its common stock.

The Preferred Stock is redeemable at the Company’s option in whole or in part, on or after November 15, 2023 at a redemption price of $25,000 per share, plus unpaid dividends attributable to the current dividend period. Prior to November 15, 2023, the Preferred Stock is redeemable at the Company’s option, in whole but not in part, within 90 days of the occurrence of (a) a rating agency event at a redemption price equal to $25,500 per share, plus unpaid dividends attributable to the current dividend period in circumstances where a rating agency changes its criteria used to assign equity credit to securities like the Preferred Stock; or (b) a regulatory capital event at a redemption price equal to $25,000 per share, plus unpaid dividends attributable to the current dividend period in circumstances where a capital regulator such as a state insurance regulator changes or proposes to change capital adequacy rules.

Capital Purchase Program ("CPP") Warrants

CPP warrants were issued in 2009 as part of a program established by the U.S. Department of the Treasury under the Emergency Economic Stabilization Act of 2008. The CPP warrants expired on June 26, 2019.

The declaration of common stock dividends by the Company in excess of a threshold triggered a provision in the Company's warrant agreement with The Bank of New York Mellon resulting in adjustments to the CPP warrant exercise price and the number of shares deliverable for each warrant exercised (“Warrant Share Number”). CPP warrant exercises were 1.9 million during the year ended December 31, 2019, and had exercise prices that ranged from $8.750 to $8.836. The exercise price was settled by the Company withholding the number of common shares issuable upon exercise of the warrants equal to the value of the aggregate exercise price of the warrants so exercised determined by reference to the closing price of the Company's common stock on the trading day on which the warrants were exercised and notice was delivered to the warrant agent.

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			Index to Consolidated Financial Statements and Schedules
Table of Contents			Note 16 - Equity

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

STATUTORY RESULTS

The U.S. domestic insurance subsidiaries of The Hartford prepare their statutory financial statements in conformity with statutory accounting practices prescribed or permitted by the applicable state insurance department which vary materially from U.S. GAAP. Prescribed statutory accounting practices include publications of the NAIC, as well as state laws, regulations and general administrative rules. The differences between statutory financial statements and financial statements prepared in accordance with U.S. GAAP vary between domestic and foreign jurisdictions. The principal differences are that statutory financial statements do not reflect deferred policy acquisition costs and limit deferred income taxes, recognize a deferred gain on retroactive reinsurance within a special surplus account rather than as other liabilities, predominately use interest rate and mortality assumptions prescribed by the NAIC for life benefit reserves, generally carry bonds at amortized cost, and present reinsurance assets and liabilities net of reinsurance. For reporting purposes, statutory capital and surplus is referred to collectively as "statutory capital".

U.S. Statutory Net Income

			For the years ended December 31,
			2021			2020			2019
Group Benefits Insurance Subsidiary			$	32		$	310		$	513
Property and Casualty Insurance Subsidiaries			1,774			1,598			1,391
Total			$	1,806		$	1,908		$	1,904

U.S. Statutory Capital

			As of December 31,
			2021			2020
Group Benefits Insurance Subsidiary			$	2,410		$	2,601
Property and Casualty Insurance Subsidiaries			11,914			10,795
Total			$	14,324		$	13,396

Regulatory Capital Requirements

The Company's U.S. insurance companies' states of domicile impose risk-based capital ("RBC") requirements. The requirements provide a means of measuring the minimum amount of statutory capital appropriate for an insurance company to support its overall business operations based on its size and risk profile. Companies below specific trigger points or ratios are classified within certain levels, each of which requires specified corrective action. All of the Company's operating insurance subsidiaries had RBC ratios in excess of the minimum levels required by the applicable insurance regulations.

Similar to the RBC ratios that are employed by U.S. insurance regulators, regulatory authorities in the international jurisdictions in which the Company operates generally establish minimum solvency requirements for insurance companies. All of the Company's international insurance subsidiaries expect to

maintain capital levels in excess of the minimum levels required by the applicable regulatory authorities.

Dividend Restrictions

Dividends to HFSG Holding Company from its insurance subsidiaries are restricted by insurance regulation. The Company’s principal insurance subsidiaries are domiciled in the United States and the United Kingdom.

The payment of dividends by Connecticut-domiciled insurers is limited under the insurance holding company laws of Connecticut. These laws require notice to and approval by the state insurance commissioner for the declaration or payment of any dividend, which, together with other dividends or distributions made within the preceding twelve months, exceeds the greater of (i) 10% of the insurer’s statutory policyholder surplus as of December 31 of the preceding year or (ii) net income (or net gain from operations, if such company is a life insurance company) for the preceding year, in each case determined under statutory insurance accounting principles. In addition, if any dividend of a Connecticut-domiciled insurer exceeds the insurer’s earned surplus, it requires the prior approval of the Connecticut Insurance Commissioner.

Property casualty insurers domiciled in New York, including Navigators Insurance Company ("NIC") and Navigators Specialty Insurance Company ("NSIC"), generally may not, without notice to and approval by the state insurance commissioner, pay dividends out of earned surplus in any twelve‑month period that exceeds the lesser of (i) 10% of the insurer’s statutory policyholders’ surplus as of the most recent financial statement on file, or (ii) 100% of its adjusted net investment income, as defined, for the same twelve month period.

Corporate members of Lloyd's Syndicates may pay dividends to its parent to the extent of available profits that have been distributed from the syndicate in excess of the Funds at Lloyd's ("FAL") capital requirement and subject to restrictions imposed under UK Company Law. The FAL is determined based on the syndicate’s solvency capital requirement of the syndicate under the Solvency II capital adequacy model, the current regulatory framework governing UK domiciled insurers, plus a Lloyd’s specific economic capital assessment. Insurers domiciled in the United Kingdom may pay dividends to its parent out of its statutory profits subject to restrictions imposed under U.K. Company law and Solvency II.

The insurance holding company laws of the other jurisdictions in which The Hartford’s insurance subsidiaries are incorporated (or deemed commercially domiciled) generally contain similar (although in certain instances more restrictive) limitations on the payment of dividends. In addition to statutory limitations on paying dividends, the Company also takes other items into consideration when determining dividends from subsidiaries. These considerations include, but are not limited to, expected earnings and capitalization of the subsidiaries, regulatory capital requirements, liquidity requirements of the individual operating company and are also dependent on the extent to which COVID-19 impacts our business, results of operations, financial condition, and liquidity.

In 2021, the Company received $295 of dividends from HLA and $165 from Hartford Funds. In addition, HFSG Holding Company

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			Index to Consolidated Financial Statements and Schedules
Table of Contents			Note 16 - Equity

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

received $1.1 billion of net dividends from P&C subsidiaries in 2021 which excludes $150 of P&C dividends that were subsequently contributed to P&C subsidiaries and $50 of P&C dividends related to interest payments on an intercompany note owed by Hartford Holding Inc. ("HHI") to Hartford Fire Insurance Company.

The Company’s property and casualty insurance subsidiaries have dividend capacity of $2.0 billion for 2022, with $1.3 to $1.4 billion of net dividends expected in 2022.

HLA has dividend capacity of $241 in 2022 with $175 to $200 of dividends expected in 2022.

There are no current restrictions on HFSG Holding Company's ability to pay dividends to its stockholders.

Restricted Net Assets

The Company's insurance subsidiaries had net assets of $16.9 billion, determined in accordance with U.S. GAAP, that were restricted from payment to the HFSG Holding Company, without prior regulatory approval at December 31, 2021.

17. INCOME TAXES

INCOME TAX EXPENSE

The Company and its subsidiaries file income tax returns in the U.S. federal jurisdiction, and various state and foreign jurisdictions, as applicable. Income before income taxes included income from domestic operations of $2,910, $2,222 and $2,644 for the years ended December 31, 2021, 2020 and 2019, and income (losses) from foreign operations of $(14), $(102) and $(84) for the years ended December 31, 2021, 2020 and 2019.

Income Tax Expense

			For the years ended December 31,
			2021			2020			2019
Income tax expense (benefit)
Current - U.S. federal			$	486		$	410		$	8
Foreign			2			—			—
Total current			488			410			8
Deferred - U.S. federal			49			(20)			476
Foreign			(6)			(7)			(9)
Total deferred			43			(27)			467
Total income tax expense			$	531		$	383		$	475

Income Tax Rate Reconciliation

			For the years ended December 31,
			2021			2020			2019
Tax provision at U.S. federal statutory rate			$	608		$	445		$	538
Tax-exempt interest			(40)			(46)			(56)
Increase in deferred tax valuation allowance			9			9			2
Sale of business			(5)			(8)			—
Earnings on corporate owned life insurance			(22)			(6)			(11)
Tax credits			(9)			(5)			—
Carryback benefit			—			(5)			—
Tax law change			(8)			(6)			—
Other			(2)			5			2
Provision for income taxes			$	531		$	383		$	475

DEFERRED TAXES

Deferred tax assets and liabilities on the consolidated balance sheets represent the tax consequences of differences between the financial reporting and tax basis of assets and liabilities.

The Company predominantly pays non-income state taxes as a percentage of premiums written which are accounted for as policy acquisition costs. State income taxes were $4, $3 and $5 for the years ended December 31, 2021, 2020 and 2019, respectively, and are included in other expenses. The Hartford has not recorded state deferred taxes, including net deferred tax assets from state operating loss carryforwards, because the Company does not expect to earn state taxable income to utilize such state tax benefits.

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			Index to Consolidated Financial Statements and Schedules
Table of Contents			Note 17 - Income Taxes

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

Deferred Tax Assets (Liabilities)

			As of December 31,
			2021			2020
Deferred tax assets
Loss reserves and tax discount			$	386		$	312
Unearned premium reserve and other underwriting related reserves			406			384
Investment-related items			8			125
Employee benefits			225			282
Net operating loss carryover			29			11
Other			—			34
Total deferred tax assets			1,054			1,148
Valuation allowance			(7)			(4)
Deferred tax assets, net of valuation allowance			1,047			1,144
Deferred tax liabilities
Deferred acquisition costs			(129)			(120)
Net unrealized gains on investments			(428)			(758)
Other depreciable and amortizable assets			(216)			(220)
Other			(4)			—
Total deferred tax liabilities			(777)			(1,098)
Net deferred tax asset			$	270		$	46

As of December 31, 2021, the Company has foreign net operating losses of $29 for which a valuation allowance of $7 has been established. While the foreign net operating losses ("NOLs") do not expire, this assessment reflects uncertainty in the Company's ability to generate sufficient taxable income in the near term in those specific jurisdictions.

Management has assessed the need for a valuation allowance against its deferred tax assets based on tax character and jurisdiction. In making the assessment, management considered future taxable temporary difference reversals, future taxable income exclusive of reversing temporary differences and carryovers, taxable income in open carry back years and other tax planning strategies which management views as prudent and feasible.

UNCERTAIN TAX POSITIONS

Rollforward of Unrecognized Tax Benefits

			For the years ended December 31,
			2021			2020			2019
Balance, beginning of period			$	15		$	14		$	14
Gross increases - tax positions in current period			6			1			—
Lapse of statute of limitations			(5)			—			—
Balance, end of period			$	16		$	15		$	14

The entire amount of unrecognized tax benefits, if recognized, would affect the effective tax rate in the period of the release. The Company recognized $5 of its previously unrecognized tax benefits associated with dividends from segregated asset accounts of the life and annuity business sold in 2018. This liability was subject to a tax indemnification agreement and a corresponding receivable included in other assets has been taken down upon lapse of the statute of limitations.

OTHER TAX MATTERS

On June 10, 2021, the United Kingdom enacted Finance Bill 2021, which included an increase in the corporate tax rate from 19% to 25%, effective April 1, 2023. In 2021, the Company recorded a tax benefit of $8, which reflects the estimated benefit of the change in tax rate on the deferred tax assets and liabilities of its U.K. subsidiaries.

On March 27, 2020, as part of the business stimulus package in response to the COVID-19 pandemic, the U.S. government enacted the Coronavirus Aid, Relief, and Economic Security ("CARES") Act. The CARES Act established new tax provisions including, but not limited to: (1) five-year carryback of net operating losses generated in 2018, 2019 and 2020; (2) accelerated refund of alternative minimum tax credit carryforwards; and (3) retroactive changes to allow accelerated depreciation for certain depreciable property.

For the year ended December 31, 2020 the Company recorded a tax benefit of $11 related to the expected carryback of losses from the Navigators Group 2019 pre-acquisition tax returns to recover taxes paid in prior years at the previous statutory tax rate of 35%, of which $6 was by virtue of the non-insurance carryback provision of the CARES Act.

For the year ended December 31, 2021 and 2020 the Company recorded a tax benefit of $5 and $8 related to the excess of tax basis over GAAP basis on the sale of the continental Europe operations. Refer to Note 22 - Business Dispositions.

The federal income tax audits for the Company have been completed through 2013, and the Company is not currently under federal income tax examination for any open years. The statute of limitations is closed through the 2017 tax year with the exception of NOL carryforwards utilized in open tax years. Management believes that adequate provision has been made in the Company's Consolidated Financial Statements for any potential adjustments that may result from tax examinations and other tax-related matters for all open tax years.

The Company classifies interest and penalties (if applicable) as income tax expense in the Consolidated Financial Statements. The Company recognized net interest income of $1, $1 and $1 for the years ended December 31, 2021, 2020 and 2019. The Company has no interest payable as of December 31, 2021, 2020 and 2019. The Company does not believe it would be subject to any penalties in any open tax years and, therefore, has not recorded any accrual for penalties.

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			Index to Consolidated Financial Statements and Schedules
Table of Contents			Note 18 - Accumulated Other Comprehensive Income

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

18. CHANGES IN AND RECLASSIFICATIONS FROM ACCUMULATED OTHER COMPREHENSIVE INCOME

Changes in AOCI, Net of Tax for the Year Ended December 31, 2021

			Changes in
			Net Unrealized Gain on Fixed Maturities			Unrealized Loss on Fixed Maturities with ACL			Net Gain (Loss) on Cash Flow Hedging Instruments			Foreign Currency Translation Adjustments			Pension and Other Postretirement Plan Adjustments			AOCI, net of tax
Beginning balance			$	2,834		$	(2)		$	12		$	43		$	(1,717)		$	1,170
OCI before reclassifications			(1,307)			—			28			(3)			219			(1,063)
Amounts reclassified from AOCI			(234)			—			(36)			—			70			(200)
OCI, before tax			(1,541)			—			(8)			(3)			289			(1,263)
Income tax benefit (expense)			323			—			2			1			(61)			265
OCI, net of tax			(1,218)			—			(6)			(2)			228			(998)
Ending balance			$	1,616		$	(2)		$	6		$	41		$	(1,489)		$	172

Changes in AOCI, Net of Tax for the Year Ended December 31, 2020

			Changes in
			Net Unrealized Gain on Fixed Maturities			Unrealized Loss on Fixed Maturities with ACL			Net Gain (Loss) on Cash Flow Hedging Instruments			Foreign Currency Translation Adjustments			Pension and Other Postretirement Plan Adjustments			AOCI, net of tax
Beginning balance			$	1,684		$	(3)		$	9		$	34		$	(1,672)		$	52
OCI before reclassifications			1,627			1			30			11			(117)			1,552
Amounts reclassified from AOCI			(171)			—			(26)			—			60			(137)
OCI, before tax			1,456			1			4			11			(57)			1,415
Income tax benefit (expense)			(306)			—			(1)			(2)			12			(297)
OCI, net of tax			1,150			1			3			9			(45)			1,118
Ending balance			$	2,834		$	(2)		$	12		$	43		$	(1,717)		$	1,170

Changes in AOCI, Net of Tax for the Year ended December 31, 2019

			Changes in
			Net Unrealized Gain on Fixed Maturities			OTTI Losses in OCI			Net Gain on Cash Flow Hedging Instruments			Foreign Currency Translation Adjustments			Pension and Other Postretirement Plan Adjustments			AOCI, net of tax
Beginning balance			$	24		$	(4)		$	(5)		$	30		$	(1,624)		$	(1,579)
OCI before reclassifications			2,275			1			28			5			(104)			2,205
Amounts reclassified from AOCI			(174)			—			(10)			—			43			(141)
OCI, before tax			2,101			1			18			5			(61)			2,064
Income tax benefit (expense)			(441)			—			(4)			(1)			13			(433)
OCI, net of tax			1,660			1			14			4			(48)			1,631
Ending balance			$	1,684		$	(3)		$	9		$	34		$	(1,672)		$	52

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			Index to Consolidated Financial Statements and Schedules
Table of Contents			Note 18 - Accumulated Other Comprehensive Income

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

Reclassifications from AOCI

AOCI			Amount Reclassified from AOCI									Affected Line Item in the Consolidated Statement of Operations
			For the year ended December 31, 2021			For the year ended December 31, 2020			For the year ended December 31, 2019
Net Unrealized Gain on Fixed Maturities
Fixed maturities, AFS			$	234		$	171		$	174		Net realized gains (losses)
			234			171			174			Total before tax
			49			36			37			Income tax expense
			$	185		$	135		$	137		Net income
Net Gains on Cash Flow Hedging Instruments
Interest rate swaps			$	—		$	—		$	2		Net realized gains (losses)
Interest rate swaps			41			29			4			Net investment income
Interest rate swaps			(10)			(7)			1			Interest expense
Foreign currency swaps			—			(1)			—			Net realized gains (losses)
Foreign currency swaps			5			5			3			Net investment income
			36			26			10			Total before tax
			8			5			2			Income tax expense
			$	28		$	21		$	8		Net income
Pension and Other Postretirement Plan Adjustments
Amortization of prior service credit			$	7		$	7		$	7		Insurance operating costs and other expenses
Amortization of actuarial loss			(77)			(67)			(50)			Insurance operating costs and other expenses
			(70)			(60)			(43)			Total before tax
			(15)			(13)			(9)			Income tax expense
			(55)			(47)			(34)			Net income
Total amounts reclassified from AOCI			$	158		$	109		$	111		Net income

19. EMPLOYEE BENEFIT PLANS

Investment and Savings Plan

Substantially all U.S. employees of the Company are eligible to participate in The Hartford Investment and Savings Plan under which designated contributions may be invested in a variety of investments, including up to 10% in a fund consisting largely of common stock of The Hartford. The Company's contributions include a non-elective contribution of 2.0% of eligible compensation and a dollar-for-dollar matching contribution of up to 6.0% of eligible compensation contributed by the employee each pay period. The Company also maintains a non-qualified savings plan, The Hartford Excess Savings Plan, with the dollar-for-dollar matching contributions related to employee compensation in excess of the amount of eligible compensation that can be contributed under the tax-qualified Investment and Savings Plan. An employee's eligible compensation includes overtime and bonuses but for the Investment and Savings Plan and Excess Savings Plan combined, is limited to $1 annually. The total cost to The Hartford for these plans was approximately

$147, $153 and $156 for the years ended December 31, 2021, 2020 and 2019, respectively.

Additionally, The Hartford has established defined contribution pension plans for certain employees of the Company’s international subsidiaries. The cost to The Hartford for the years ended December 31, 2021, 2020 and 2019 for these plans was immaterial.

Postretirement Benefit Plans

Defined Benefit Pension Plan- The Company maintains The Hartford Retirement Plan for U.S. Employees, a U.S. qualified defined benefit pension plan (“U.S. Pension Plan”) that covers substantially all U.S. employees hired prior to January 1, 2013. The Company also maintains non-qualified pension plans to provide retirement benefits previously accrued that are in excess of Internal Revenue Code limitations, as well as a Canadian defined benefit pension plan. Together, the non-

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			Index to Consolidated Financial Statements and Schedules
Table of Contents			Note 19 - Employee Benefit Plans

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

qualified and Canadian defined benefit plan are referred to as "Other Pension Plans".

The U.S. Pension Plan includes two benefit formulas, both of which are frozen: a final average pay formula (for which all accruals ceased as of December 31, 2008) and a cash balance formula for which benefit accruals ceased as of December 31, 2012, although interest will continue to accrue to existing cash balance formula account balances. Employees who were participants as of December 31, 2012 continue to earn vesting credit with respect to their frozen accrued benefits if they continue to work. The interest crediting rate on the cash balance plan is the greater of the average annual yield on 10-year U.S. Treasury Securities or 3.3%. The Hartford Excess Pension Plan I and The Hartford Excess Pension Plan II, the Company's non-qualified excess pension benefit plans for certain highly compensated employees, are also frozen.

Group Retiree Health Plan- The Company provides certain health care and life insurance benefits for eligible retired employees. The Company’s contribution for health care benefits are a function of the retiree’s date of retirement and years of service. In addition, the plan has a defined dollar cap for certain retirees which limits average Company contributions. The Hartford has prefunded a portion of the health care obligations where such prefunding can be accomplished on a tax effective basis. Beginning January 1, 2017, for retirees 65 and older who were participating in the Retiree PPO Medical Plan, the Company funds the cost of medical and dental health care benefits through contributions to a Health Reimbursement Account and covered individuals can access a variety of insurance plans from a health care exchange. Effective January 1, 2002, Company-subsidized retiree medical, retiree dental and retiree life insurance benefits were eliminated for employees with original hire dates with the Company on or after January 1, 2002. The Company also amended its postretirement medical, dental and life insurance coverage plans to no longer provide subsidized coverage for employees who retired on or after January 1, 2014.

Assumptions

Pursuant to accounting principles related to the Company’s pension and other postretirement obligations to employees

under its various benefit plans, the Company is required to make a significant number of assumptions in order to calculate the related liabilities and expenses each period. The two economic assumptions that have the most impact on pension and other postretirement expense under the defined benefit pension plans and group retiree health plan are the discount rate and the expected long-term rate of return on plan assets. The assumed discount rates and yield curve is based on high-quality fixed income investments consistent with the maturity profile of the expected liability cash flows. Based on all available market and industry information, it was determined that 2.91% and 2.72% were the appropriate discount rates as of December 31, 2021 to calculate the Company’s U.S. Pension Plan and other postretirement obligations, respectively.

The expected long-term rate of return considers the actual compound rates of return earned over various historical time periods. The Company also considers the investment volatility, duration and total returns for various time periods related to the characteristics of the pension obligation, which are influenced by the Company's workforce demographics. In addition, for the pension plan, the Company anticipates an allocation of approximately 73% in fixed income securities and 27% in non fixed income securities (global equities, hedge funds and private market alternatives) to derive an expected long-term rate of return. For the other postretirement plans, the Company anticipates an allocation of approximately 70% in fixed income securities and 30% in non fixed income securities. Based upon these analyses, management determined the long-term rate of return assumption to be 5.40% and 4.90% for the Company's U.S. Pension Plan and other postretirement obligations, respectively, for the year ended December 31, 2021 and 6.00% and 5.60% for the Company's U.S. Pension Plan and other postretirement obligations, respectively, for the year ended December 31, 2020. To determine the Company's 2022 expense, the Company has assumed an expected long-term rate of return on plan assets of 5.10% and 4.80% for the Company's U.S. Pension Plan and other postretirement obligations, respectively.

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Table of Contents			Note 19 - Employee Benefit Plans

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

Assumptions Used in Calculating the Benefit Obligations and the Net Amount Recognized

			For the years ended December 31,
			2021			2020			2019
Weighted Average Assumptions used to determine benefit obligations
Discount rate:
U.S. Pension Plan			2.91		%	2.65		%	3.33		%
Other Pension Plans			2.83		%	2.51		%	3.23		%
Other postretirement benefits			2.72		%	2.36		%	3.15		%
Interest crediting rate on cash balance plan			3.30		%	3.30		%	3.30		%
Weighted Average Assumptions used to determine net periodic benefit costs:
Discount rate:
U.S. Pension Plan			2.66		%	3.33		%	4.35		%
Other Pension Plans			2.52		%	3.25		%	4.28		%
Other postretirement benefits			2.36		%	3.15		%	4.23		%
Expected long-term rate of return on plan assets:
U.S. Pension Plan			5.40		%	6.00		%	6.45		%
Other Pension Plans			2.90		%	3.90		%	4.50		%
Other postretirement benefits			4.90		%	5.60		%	6.00		%
Assumed Health Care Cost Trend Rates
Pre-65 health care cost trend rate			7.00		%	7.00		%	7.00		%
Post-65 health care cost trend rate			N/A			N/A			N/A
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate)			4.50		%	4.50		%	4.50		%
Year that the rate reaches the ultimate trend rate			2033			2033			2033

Obligations and Funded Status

The following tables set forth a reconciliation of beginning and ending balances of the benefit obligation and fair value of plan assets, as well as the funded status of the Company's defined benefit pension and postretirement health care and life

insurance benefit plans. Information is presented for the qualified U.S. Pension Plan, Other Pension Plans (including non-qualified plans and the Canadian pension plan) and other postretirement benefits.

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Table of Contents			Note 19 - Employee Benefit Plans

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

Obligations and Funded Status

			U.S. Pension Plan									Other Pension Plans									Total Pension Plans									Other Postretirement Benefits
			For the years ended December 31,
			2021			2020						2021			2020						2021			2020						2021			2020
Change in Benefit Obligation
Benefit obligation — beginning of year			$	4,409		$	4,060					$	466		$	438					$	4,875		$	4,498					$	220		$	223
Service cost			4			4						—			—						4			4						—			—
Interest cost			87			115						9			12						96			127						3			6
Plan participants’ contributions			—			—						—			—						—			—						11			11
Actuarial loss (gain)			(7)			8						2			4						(5)			12						1			(2)
Changes in assumptions			(96)			399						(11)			38						(107)			437						(5)			16
Benefits and expenses paid			(187)			(177)						(26)			(26)						(213)			(203)						(33)			(34)
Foreign exchange adjustment			—			—						(1)			—						(1)			—						—			—
Benefit obligation — end of year [1]			$	4,210		$	4,409					$	439		$	466					$	4,649		$	4,875					$	197		$	220
Change in Plan Assets
Fair value of plan assets — beginning of year			$	4,346		$	3,899					$	17		$	15					$	4,363		$	3,914					$	63		$	75
Actual return on plan assets			338			566						(1)			2						337			568						4			6
Employer contributions [2]			—			70						—			—						—			70						7			5
Benefits paid [3]			(187)			(177)						(1)			—						(188)			(177)						(23)			(23)
Expenses paid			(30)			(12)						—			—						(30)			(12)						—			—
Fair value of plan assets — end of year			$	4,467		$	4,346					$	15		$	17					$	4,482		$	4,363					$	51		$	63
Funded status — end of year			$	257		$	(63)					$	(424)		$	(449)					$	(167)		$	(512)					$	(146)		$	(157)
Amounts Recognized in the Consolidated Balance Sheets
Other assets			$	257		$	—					$	—		$	—					$	257		$	—					$	—		$	—
Other liabilities			$	—		$	(63)					$	(424)		$	(449)					$	(424)		$	(512)					$	(146)		$	(157)

[1] As of December 31, 2021 and 2020, the Accumulated Benefit Obligation is equal to the Projected Benefit Obligation.

[2] Employer contributions in 2020 to the U.S. qualified defined benefit pension plan were discretionary, made in cash, and did not include contributions of the Company’s common stock.

[3] Other postretirement benefits paid represent non-key employee postretirement medical benefits paid from the Company's prefunded trust fund.

Changes in assumptions for the U.S. Pension Plan in 2021 primarily included a $109 decrease in the benefit obligation for pension benefits as a result of an increase in the discount rate from 2.65% as of the December 31, 2020 valuation to 2.91% as of the December 31, 2021 valuation. Changes in assumptions in 2020 included a $395 increase in the benefit obligation for pension benefits as a result of a decrease in the discount rate from 3.33% as of the December 31, 2019 valuation to 2.65% as of the December 31, 2020 valuation.

Changes in assumptions for the Other Pension Plans in 2021 primarily included a $12 decrease in the benefit obligation for pension benefits as a result of an increase in the discount rate from 2.51% as of the December 31, 2020 valuation to 2.83% as of the December 31, 2021 valuation. Changes in assumptions in 2020 included a $39 increase in the benefit obligation for pension benefits as a result of a decrease in the discount rate from 3.23% as of the December 31, 2019 valuation to 2.51% as of the December 31, 2020 valuation.

The cash balance plan pension benefit obligation was $414 and $443 as of December 31, 2021 and 2020, respectively.

The fair value of assets for total pension plans, and hence the funded status, presented in the table above excludes assets of $210 and $186 as of December 31, 2021 and 2020, respectively, held in rabbi trusts and designated for the Other Pension Plans. The assets do not qualify as plan assets; however, the assets are available to pay benefits for certain retired, terminated and active participants. Such assets are available to the Company’s general creditors in the event of insolvency. The rabbi trust assets consist of equity and fixed income investments. To the extent the fair value of these rabbi trusts were included in the table above, total pension plan assets would have been $4,692 and $4,549 as of December 31, 2021 and 2020, respectively, and the funded status of total pension plans would have been $43 and $(326) as of December 31, 2021 and 2020, respectively.

The tables below present an aggregate view of net periodic cost (benefit) and components of other comprehensive income and AOCI for pension plans that includes both the U.S. Pension Plan and Other Pension Plans. Net periodic cost (benefit) is recognized in insurance operating costs and other expenses in the consolidated statement of operations.

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THE HARTFORD FINANCIAL SERVICES GROUP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

Net Periodic Cost (Benefit)

			Pension Benefits									Other Postretirement Benefits
			For the years ended December 31,
			2021			2020			2019			2021			2020			2019
Service cost			$	4		$	4		$	4		$	—		$	—		$	—
Interest cost			96			127			159			3			6			8
Expected return on plan assets			(205)			(215)			(226)			(3)			(4)			(4)
Amortization of prior service credit			—			—			—			(7)			(7)			(7)
Amortization of actuarial loss			69			60			44			8			7			6
Net periodic cost (benefit)			$	(36)		$	(24)		$	(19)		$	1		$	2		$	3

Amounts Recognized in Other Comprehensive Income (Loss)

			Pension Benefits									Other Postretirement Benefits
			For the years ended December 31,
			2021			2020			2019			2021			2020			2019
Amortization of actuarial loss			$	69		$	60		$	44		$	8		$	7		$	6
Amortization of prior service credit			—			—			—			(7)			(7)			(7)
Net income (loss) arising during the year			214			(106)			(88)			5			(11)			(18)
Prior service cost (credit)			—			—			—			—			—			2
Total			$	283		$	(46)		$	(44)		$	6		$	(11)		$	(17)

Amounts in Accumulated Other Comprehensive Income (Loss), Before Tax, not yet Recognized as Components of Net Periodic Benefit Cost

			Pension Benefits									Other Postretirement Benefits
			As of December 31,
			2021			2020			2019			2021			2020			2019
Net loss			$	(1,815)		$	(2,098)		$	(2,052)		$	(124)		$	(136)		$	(132)
Prior service credit			—			—			—			54			60			67
Total			$	(1,815)		$	(2,098)		$	(2,052)		$	(70)		$	(76)		$	(65)

Pension Plan Assets

Investment Strategy and Target Allocation

The overall investment strategy of the U.S. Pension Plan is to produce total investment returns that provide sufficient funding for present and anticipated future benefit obligations within the constraints of a prudent level of portfolio risk and diversification. With respect to asset management, the oversight responsibility of the U.S. Pension Plan rests with The Hartford’s Pension Investment Committee composed of individuals whose responsibilities include establishing overall objectives and the setting of investment policy; selecting appropriate investment options and ranges; selecting qualified service providers such as investment managers and investment consultants; reviewing the asset allocation mix and asset allocation targets on a regular basis; and monitoring performance to determine whether or not the rate of return objectives are being met and that policy and guidelines are being followed. The Pension Investment Committee has adopted a de-risking glide path that reduces the target allocation to equity securities and alternative assets and increases the allocation to fixed income securities over time in response to improvement in the funded status of the U.S. Pension Plan. The Company believes that the asset allocation

decision will be the single most important factor determining the long-term performance of the U.S. Pension Plan.

Target Asset Allocation

			Pension Plans						Other Postretirement Plans
			Minimum			Maximum			Minimum			Maximum
Equity securities			3		%	23		%	—		%	45		%
Fixed income securities			69		%	77		%	55		%	100		%
Alternative assets			—		%	28		%	—		%	—		%

Divergent market performance among different asset classes and changes in the context of the glide path may, from time to time, cause the asset allocation to deviate from the desired asset allocation ranges. The asset allocation mix is reviewed on a periodic basis. If it is determined that an asset allocation mix rebalancing is required, future portfolio additions and withdrawals will be used first, as necessary, to bring the allocation within tactical ranges, before shifting assets across portfolios.

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THE HARTFORD FINANCIAL SERVICES GROUP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

The U.S. Pension Plan invests in investment portfolios, including commingled funds and partnerships, managed by affiliated and unaffiliated managers to gain exposure to emerging markets, equity, hedge funds and other alternative investments. These portfolios encompass multiple asset classes reflecting the current needs of the U.S. Pension Plan, the investment preferences and risk tolerance of the U.S. Pension Plan and the desired degree of diversification. These asset classes include publicly traded equities, bonds and alternative investments and are made up of individual investments in cash and cash equivalents, equity securities, debt securities, asset-backed

securities, mortgage loans and hedge funds. Hedge fund investments represent a diversified portfolio of partnership investments in a variety of strategies.

In addition, the Company uses U.S. Treasury bond futures contracts and U.S. Treasury STRIPS, in addition to certain other investments, in a duration overlay program to adjust the duration of U.S. Pension Plan assets to better match the duration of the benefit obligation.

Pension Plan Assets at Fair Value

			As of December 31, 2021															As of December 31, 2020
Asset Category			Level 1			Level 2			Level 3			Total						Level 1			Level 2			Level 3			Total
Short-term investments:			$	120		$	29		$	—		$	149					$	75		$	25		$	—		$	100
Fixed Income Securities:
Corporate			—			2,333			42			2,375						—			2,303			39			2,342
RMBS			—			98			—			98						—			41			1			42
U.S. Treasuries			23			169			—			192						—			47			—			47
Foreign government			—			38			2			40						—			16			9			25
CMBS			—			56			4			60						—			30			—			30
Other fixed income [1]			—			185			1			186						—			137			—			137
Mortgage Loans			—			—			202			202						—			—			161			161
Equity Securities:
Domestic			237			—			—			237						513			—			—			513
International			121			—			—			121						271			—			—			271
Total pension plan assets at fair value, in the fair value hierarchy [2]			$	501		$	2,908		$	251		$	3,660					$	859		$	2,599		$	210		$	3,668
Other Investments, at net asset value [3]:
Private Market Alternatives												572															451
Hedge funds												199															224
Total pension plan assets at fair value			$	501		$	2,908		$	251		$	4,431					$	859		$	2,599		$	210		$	4,343

*[1]*Includes ABS, municipal bonds, and CDOs.

*[2]*Excludes $51 and $20 as of December 31, 2021 and 2020, respectively, of investment receivables net of investment payables that are excluded from this disclosure requirement because they are trade receivables in the ordinary course of business where the carrying amount approximates fair value.

*[3]*Investments that are measured at net asset value per share or an equivalent and have not been classified in the fair value hierarchy.

The tables below provide fair value level 3 rollforwards for the U.S. Pension Plan Assets for which significant unobservable inputs ("Level 3") are used in the fair value measurement on a recurring basis. The U.S. Pension Plan classifies the fair value of financial instruments within Level 3 if there are no observable markets for

the instruments or, in the absence of active markets, if one or more of the significant inputs used to determine fair value are based on the U.S. Pension Plan’s own assumptions. Therefore, the gains and losses in the tables below include changes in fair value due to both observable and unobservable factors.

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Table of Contents			Note 19 - Employee Benefit Plans

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

Pension Plan Asset Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
Assets			Corporate			RMBS			Foreign government			Mortgage loans			Other [1]						Totals
Fair Value as of January 1, 2021			$	39		$	1		$	9		$	161		$	—					$	210
Realized gains (losses), net			—			—			—			(3)			—						(3)
Changes in unrealized gains, net			—			—			—			—			—						—
Purchases			6			—			—			55			5						66
Settlements			—			—			—			—			—						—
Sales			(5)			—			(7)			(11)			—						(23)
Transfers into Level 3			2			—			—			—			—						2
Transfers out of Level 3			—			(1)			—			—			—						(1)
Fair Value as of December 31, 2021			$	42		$	—		$	2		$	202		$	5					$	251
Fair Value as of January 1, 2020			$	27		$	—		$	1		$	131		$	1					$	160
Realized gains (losses), net			—			—			—			—			(1)						(1)
Changes in unrealized gains, net			1			—			—			4			1						6
Purchases			14			1			9			32			—						56
Settlements			—			—			—			—			—						—
Sales			(3)			—			—			(6)			—						(9)
Transfers into Level 3			—			—			—			—			—						—
Transfers out of Level 3			—			—			(1)			—			(1)						(2)
Fair Value as of December 31, 2020			$	39		$	1		$	9		$	161		$	—					$	210

[1]**"Other" includes U.S. Treasuries, Other fixed income and CMBS investments.

During the year ended December 31, 2021, transfers into and (out) of Level 3 are primarily attributable to the appearance of or lack thereof of market observable information and the re-evaluation of the observability of pricing inputs.

During the year ended December 31, 2020, transfers into and (out) of Level 3 are primarily attributable to the appearance of or

lack thereof of market observable information and the re-evaluation of the observability of pricing inputs.

There was less than $1 in Company common stock included in the U.S. Pension Plan’s assets as of December 31, 2021 and 2020.

Other Postretirement Plan Assets at Fair Value

			As of December 31, 2021															As of December 31, 2020
Asset Category			Level 1			Level 2			Level 3			Total						Level 1			Level 2			Level 3			Total
Short-term investments			$	1		$	—		$	—		$	1					$	2		$	—		$	—		$	2
Fixed Income Securities:
Corporate			—			11			—			11						—			16			—			16
RMBS			—			7			—			7						—			9			—			9
U.S. Treasuries			1			13			—			14						—			16			—			16
Foreign government			1			—			—			1						—			—			—			—
CMBS			—			—			—			—						—			1			—			1
Other fixed income			—			1			—			1						—			2			—			2
Equity Securities:
Large-cap			16			—			—			16						17			—			—			17
Total other postretirement plan assets at fair value			$	19		$	32		$	—		$	51					$	19		$	44		$	—		$	63

There was no Company common stock included in the other postretirement benefit plan assets as of December 31, 2021 and 2020.

Concentration of Risk

In order to minimize risk, the Pension Plan maintains a listing of permissible and prohibited investments. In addition, the Pension Plan has certain concentration limits and investment quality requirements imposed on permissible investment options.

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Table of Contents			Note 19 - Employee Benefit Plans

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

Permissible investments include U.S. equity, international equity, alternative asset and fixed income investments including derivative instruments. Permissible derivative instruments include futures contracts, options, swaps, currency forwards, caps or floors and may be used to control risk or enhance return but will not be used for leverage purposes.

Securities specifically prohibited from purchase include, but are not limited to: shares or fixed income instruments issued by The Hartford (other than equity securities purchased on the open market as part of a passively managed strategy), short sales of any type within long-only portfolios, non-derivative securities involving the use of margin, leveraged floaters and inverse floaters, including money market obligations, natural resource real properties such as oil, gas or timber and precious metals.

Other than U.S. government and certain U.S. government agencies backed by the full faith and credit of the U.S. government, the Pension Plan does not have any material exposure to any concentration risk of a single issuer.

Expected Employer Contributions

The Company does not have a 2022 required minimum funding contribution for the U.S. qualified defined benefit pension plan. The Company has not determined whether, and to what extent,

contributions may be made to the U. S. qualified defined benefit pension plan in 2022. The Company will monitor the funded status of the U.S. qualified defined benefit pension plan during 2022 to make this determination.

Benefit Payments

Amounts of Benefits Expected to be Paid over the next Ten Years from Pension and other Postretirement Plans as of December 31, 2021

			Pension Benefits			Other Postretirement Benefits
2022			$	228		$	20
2023			234			18
2024			240			16
2025			250			15
2026			249			14
2027 - 2031			1,265			56
Total			$	2,466		$	139

20. STOCK COMPENSATION PLANS

The Company's stock-based compensation plans are described below. Shares issued in satisfaction of stock-based compensation may be made available from authorized but unissued shares, shares held by the Company in treasury or from shares purchased in the open market. In 2021, 2020 and 2019, the Company issued shares from treasury in satisfaction of stock-based compensation.

The Hartford measures stock compensation at the grant date based on the estimated fair value of the award and recognizes expense on a straight-line basis, net of estimated forfeitures, over the requisite service period. Stock-based compensation expense, included in insurance operating costs and other expenses in the consolidated statement of operations, was as follows:

Stock-Based Compensation Expense

			For the years ended December 31,
			2021			2020			2019
Stock-based compensation plans expense			$	128		$	116		$	125
Income tax benefit			(22)			(20)			(21)
Excess tax benefit on awards vested, exercised and expired			(6)			(1)			(6)
Total stock-based compensation plans expense, net of tax			$	100		$	95		$	98

The Company did not capitalize any cost of stock-based compensation. As of December 31, 2021, the total compensation cost related to non-vested awards not yet recognized was $71, which is expected to be recognized over a weighted average period of 2 years.

Stock Plan

Future stock-based awards may be granted under The Hartford's 2020 Stock Incentive Plan (the "Stock Incentive Plan") other than the Subsidiary Stock Plan and the Employee Stock Purchase Plan described below. The Stock Incentive Plan provides for awards to be granted in the form of non-qualified or incentive stock options qualifying under Section 422 of the Internal Revenue Code, stock appreciation rights, performance shares, restricted stock or restricted stock units, or any other form of stock-based award. The maximum number of shares, subject to adjustments set forth in the 2020 Stock Plan, that may be issued to Company employees and third-party service providers during the 10-year duration of the Stock Incentive Plan

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			Index to Consolidated Financial Statements and Schedules
Table of Contents			Note 20 - Stock Compensation Plans

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

is the sum of 11,250,000 shares, any shares cancelled subsequent to February 29, 2020, plus any shares used for tax withholding purposes. If any award under an earlier incentive stock plan is forfeited, terminated, surrendered, exchanged, expires unexercised, or is settled in cash in lieu of stock (including to effect tax withholding) or for the net issuance of a lesser number of shares than the number subject to the award, the shares of stock subject to such award (or the relevant portion thereof) shall be available for awards under the Stock Incentive Plan and such shares shall be added to the maximum limit. As of December 31, 2021, there were 9,667,290 shares available for future issuance.

The fair values of awards granted under the Stock Incentive Plan are measured as of the grant date and expensed ratably over the awards’ vesting periods, generally 3 years. For stock option awards to retirement-eligible employees, the Company recognizes the expense over a period shorter than the stated vesting period because the employees receive accelerated vesting upon retirement and, therefore, the vesting period is considered non-substantive. Beginning with awards granted in 2017, employees with restricted stock units and performance shares receive accelerated vesting upon meeting certain retirement eligibility criteria.

Stock Option Awards

Under the Stock Incentive Plan, options granted have an exercise price at least equal to the market price of the

Company’s common stock on the date of grant, and an option’s maximum term is not to exceed 10 years. Options generally become exercisable over a period of three years commencing one year from the date of grant.

The Company uses a hybrid lattice/Monte-Carlo based option valuation model (the “Plan Valuation Model”) that incorporates the possibility of early exercise of options into the valuation. The Plan Valuation Model also incorporates the Company’s historical termination and exercise experience to determine the option value.

The Plan Valuation Model incorporates ranges of assumptions for inputs, and those ranges are disclosed below. The term structure of volatility is generally constructed utilizing implied volatilities from exchange-traded options, historical volatility of the Company’s stock and other factors. The Company uses historical data to estimate option exercise and employee termination within the Plan Valuation Model, and accommodates variations in employee preference and risk-tolerance by segregating the grantee pool into a series of behavioral cohorts and conducting a fair valuation for each cohort individually. The expected term of options granted is derived from the output of the option Plan Valuation Model and represents, in a mathematical sense, the period of time that options are expected to be outstanding. The risk-free rate for periods within the contractual life of the option is based on the U.S. Constant Maturity Treasury yield curve in effect at the time of grant.

Stock Options Valuation Assumptions

			For the years ended December 31,
			2021									2020									2019
Expected dividend yield			2.8%									2.6%									2.5%
Expected annualized spot volatility			34.1		%	-			43.0%			22.2		%	-			36.2%			20.7		%	-			36.7%
Weighted average annualized volatility			39.4%									30.9%									29.3%
Risk-free spot rate			0.03		%	-			1.4%			1.3		%	-			1.6%			2.4		%	-			2.6%
Expected term			6.4 years									6.6 years									5.9 years

Non-qualified Stock Option Activity Under the Stock Incentive Plan

			Number of Options (in thousands)			Weighted Average Exercise Price			Weighted Average Remaining Contractual Term			Aggregate Intrinsic Value
			For the year ended December 31, 2021
Outstanding at beginning of year			6,693			$	45.54
Granted			930			$	51.87
Exercised			(1,137)			$	39.51
Forfeited			(51)			$	53.03
Expired			—			$	—
Outstanding at end of year			6,435			$	47.46		5.7			$	139
Outstanding, fully vested and expected to vest			6,385			$	47.42		5.7			$	138
Exercisable at end of year			4,749			$	45.67		4.7			$	111

Aggregate intrinsic value represents the value of the Company's closing stock price on the last trading day of the period in excess of the exercise price multiplied by the number of options outstanding or exercisable. The aggregate intrinsic value excludes the effect of stock options that have a zero or negative

intrinsic value. The weighted average grant-date fair value per share of options granted during the years ended December 31, 2021, 2020, and 2019 was $14.88, $12.97 and $11.71, respectively. For the years ended December 31, 2021, 2020, and 2019, The Hartford received $45, $3, and $24, respectively,

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			Index to Consolidated Financial Statements and Schedules
Table of Contents			Note 20 - Stock Compensation Plans

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

in cash from exercised stock options. The Hartford recognized tax benefits of $4, $0, and $2 on stock options exercised for the years ended December 31, 2021, 2020 and 2019, respectively. The total intrinsic value of options exercised during the years ended December 31, 2021, 2020 and 2019 was $28, $2, and $16, respectively.

Share Awards

Share awards granted under the Stock Incentive Plan and outstanding include restricted stock units and performance shares. Performance shares become payable within a range of 0% to 200% of the number of shares initially granted based upon the attainment of specific performance goals achieved at the end of three years and for the 2021 grant subject to a modifier that will either increase or decrease final performance by 10% based upon results against predetermined year-end 2023 representation goals for women and people of color in executive level roles. Beginning in 2017, performance shares vest at the earlier of an employee's retirement eligibility date or three years.

Performance share awards granted prior to 2020 that are not dependent on market conditions are valued equal to the market price of the Company's common stock on the date of grant less a discount for the absence of dividends. Performance share awards granted in 2021 and 2020 that are not dependent on market conditions are valued equal to the market price of the Company’s common stock on the date of grant. Stock-compensation expense for these performance share awards without market conditions is based on a current estimate of the number of awards expected to vest based on the performance level achieved and, therefore, may change during the performance period as new estimates of performance are available.

Other performance share awards or portions thereof have a market condition based upon the Company's total stockholder return relative to a group of peer companies within a period of three years from the date of grant. Stock compensation expense for these performance share awards is based on the number of awards expected to vest as estimated at the grant date and, therefore, does not change for changes in estimated performance. The Company uses a risk neutral Monte-Carlo Plan Valuation Model that incorporates time to maturity, implied volatilities of the Company and the peer companies, and correlations between the Company and the peer companies and interest rates.

Assumptions for Total Stockholder Return Performance Shares

			For the years ended December 31,
			2021									2020									2019
Volatility of common stock			37.3%									19.6%									19.4%
Average volatility of peer companies			27.0		%	-			49.0%			18.0		%	-			31.0%			16.0		%	-			27.0%
Average correlation coefficient of peer companies			67.0%									51.0%									50.0%
Risk-free spot rate			0.2%									1.2%									2.4%
Term			3.0 years									3.0 years									3.0 years

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			Index to Consolidated Financial Statements and Schedules
Table of Contents			Note 20 - Stock Compensation Plans

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

Total Share Awards

Non-vested Share Award Activity Under the Stock Incentive Plan

			Restricted Stock Units						Performance Shares
			Number of Shares (in thousands)			Weighted-Average Grant-Date Fair Value			Number of Shares (in thousands)			Weighted-Average Grant date Fair Value
Non-vested shares			For the year ended December 31, 2021
Non-vested at beginning of year			3,866			$	52.58		790			$	54.82
Granted			1,628			$	52.13		419			$	56.09
Performance based adjustment, net									225			$	60.67
Vested			(1,160)			$	52.72		(624)			$	56.44
Forfeited			(303)			$	51.30		(45)			$	52.89
Non-vested at end of year			4,031			$	52.45		765			$	52.53

In addition to the non-vested shares presented in the above table, there are related non-vested dividend equivalent shares. The number of non-vested dividend equivalent shares related to restricted stock units was 209 thousand and 186 thousand as of December 31, 2021 and 2020, respectively, and the number of non-vested dividend equivalent shares related to performance shares was 30 thousand and 11 thousand as of December 31, 2021 and 2020, respectively. The dividend equivalent shares are subject to the same vesting terms as the restricted stock units and performance shares.

The weighted average grant-date fair value per share of restricted stock units granted during the years ended December 31, 2021, 2020, and 2019 was $52.13, $54.64 and $50.49, respectively. The weighted average grant-

date fair value per share of performance shares granted during the years ended December 31, 2021, 2020, and 2019 was $56.09, $55.62 and $54.07, respectively.

The total fair value of shares vested during the years ended December 31, 2021, 2020 and 2019 was $105, $73 and $102, respectively, based on actual or estimated performance factors. The Company did not make cash payments in settlement of stock compensation during the years ended December 31, 2021, 2020 and 2019.

Subsidiary Stock Plan

In 2013 the Company established a subsidiary stock-based compensation plan similar to the Stock Incentive Plan, except that it awards non-public subsidiary stock as compensation. The

Company recognized stock-based compensation plan expense of $11, $11 and $11 in the years ended December 31, 2021, 2020 and 2019, respectively, for the subsidiary stock plan. Upon employee vesting of subsidiary stock, the Company recognizes a noncontrolling equity interest. Employees are restricted from selling vested subsidiary stock to anyone other than the Company and the Company has discretion on the amount of stock to repurchase. Therefore, the subsidiary stock is classified as equity because it is not mandatorily redeemable. For the years ended December 31, 2021, 2020 and 2019, the Company repurchased $16, $10 and $8, respectively, in subsidiary stock.

Employee Stock Purchase Plan

The Company sponsors The Hartford Employee Stock Purchase Plan ("ESPP"). Under this plan, eligible employees of The Hartford purchase common stock of the Company at a discount rate of 5% of the market price per share on the last trading day of the offering period. Accordingly, the plan is a non-compensatory plan. Employees purchase a variable number of shares of stock through payroll deductions elected as of the beginning of the offering period. The Company may sell up to 15,400,000 shares of stock to eligible employees under the ESPP. As of December 31, 2021, there were 3,544,674 shares available for future issuance. During the years ended December 31, 2021, 2020 and 2019, 199,173 shares, 340,653 shares, and 213,472 shares were sold, respectively. For the years ended December 31, 2021, 2020 and 2019, The Hartford received $13, $13 and $11, respectively, in cash from sales under this plan.

21. LEASES

The Hartford has operating leases for real estate and equipment. The right-of-use asset as of December 31, 2021 and 2020 was $167 and $209, respectively, and is included in property and equipment, net, in the Consolidated Balance Sheet. The lease liability as of December 31, 2021 and 2020 was $184 and $221, respectively, and is included in other liabilities in the Consolidated Balance Sheet. Variable lease costs include changes in interest rates on variable rate leases

primarily for automobiles. In 2021, variable lease costs of $4 were reported in restructuring and other costs for lease terminations under Hartford Next (see Note 23 - Restructuring and Other Costs for more information), and were excluded from components of lease expense.

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			Index to Consolidated Financial Statements and Schedules
Table of Contents			Note 21 - Leases

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

Components of Lease Expense

			For the years ended December 31,
			2021			2020			2019
Operating lease cost			$	45		$	52		$	49
Short-term lease cost			—			—			2
Variable lease cost			2			—			1
Sublease income			(3)			(5)			(5)
Total lease costs included in insurance operating costs and other expenses			$	44		$	47		$	47

Supplemental Operating Lease Information

			For the years ended December 31,
			2021			2020			2019
Operating cash flows for operating leases (for the twelve months ended)			$	46		$	54		$	50
Right-of-use asset obtained in exchange for new operating lease liabilities			3			49			42
Weighted-average remaining lease term in years for operating leases			6 years			7 years			6 years
Weighted-average discount rate for operating leases			3.0		%	3.1		%	3.5		%

Maturities of Operating Lease Liabilities as of December 31, 2021

			Operating Leases
2022			$	42
2023			40
2024			31
2025			23
2026			18
Thereafter			46
Total lease payments			200
Less: Discount on lease payments to present value			16
Total lease liability			$	184

22. BUSINESS DISPOSITIONS

Sale of Continental Europe Operations

On December 29, 2021, the Company completed the sale of its Continental Europe Operations for approximately $11, net of transaction costs. The complete sale of the Continental Europe Operations consists of multiple arrangements designed as a single transaction. The Continental Europe Operations are included in the Commercial Lines segment. Revenues and earnings are not material to the Company's consolidated results of operations for the years ended December 31, 2021, 2020 and 2019.

The sale resulted in losses of approximately $21 and $48, before tax, for the periods ended December 31, 2021 and 2020, respectively, which were recorded within net realized gains (losses) in the Consolidated Statements of Operations. The Company also recorded related income tax benefits on the sale of $5 and $18, for after tax losses of $16 and $30, for the years ended December 31, 2021 and 2020, respectively.

Total consideration less costs to sell of $11 is subject to change based on how the ultimate amounts required to settle claims on 2020 and prior accident years, as determined at the end of 2024, compare with recorded reserves as currently estimated.

The contingent consideration has been estimated at its fair value of $0 and could result in an increase or decrease in consideration depending on how ultimate losses develop. Any change in the estimated fair value of contingent consideration in a future period would increase or decrease the estimated loss on sale in that period.

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			Index to Consolidated Financial Statements and Schedules
Table of Contents			Note 22 - Business Dispositions

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

Major Classes of Assets and Liabilities Transferred by the Company to the Buyer in Connection with the Sale

			Carrying Value as of
			Closing			December 31, 2020 [1][2]
Assets
Investments and cash			$	150		$	142
Reinsurance recoverables and other			13			35
Total assets held for sale			163			177
Liabilities
Unpaid losses and loss adjustment expenses			81			84
Unearned premiums			19			31
Other liabilities			52			43
Total liabilities held for sale			$	152		$	158

[1]As of December 31, 2020, the estimated fair value of the disposal group is $14 based on the estimated consideration to be received less cost to sell. Within the disposal group, as of December 31, 2020, investments in fixed maturities and short-term investments, which are measured at fair value on a recurring basis, had a fair value of $84, of which $1 was based on quoted prices in active markets for identical assets and $83 was based on significant observable inputs. The remaining fair value less costs to sell for the disposal group is ($70), which is measured on a nonrecurring basis using significant unobservable inputs. See Note 5—Fair Value Measurements for more information.

[2]Classified as assets and liabilities held for sale.

23. RESTRUCTURING AND OTHER COSTS

In recognition of the need to become more cost efficient and competitive along with enhancing the experience we provide to agents and customers, on July 30, 2020 the Company announced an operational transformation and cost reduction plan it refers to as Hartford Next. Hartford Next is intended to reduce annual insurance operating costs and other expenses through reduction of the Company's headcount, investment in information technology ("IT") to further enhance our capabilities, and other activities. The activities are expected to be substantially complete by the end of 2023.

Termination benefits related to workforce reductions and professional fees are included within restructuring and other costs in the Consolidated Statement of Operations and unpaid restructuring costs are included in other liabilities in the

Company's Consolidated Balance Sheets. For the year ended December 31, 2021, the severance benefits accrual was reduced $25 due to more recent experience of higher than expected voluntary attrition. Subsequent to December 31, 2021, the Company expects to incur additional costs including, amortization of right of use assets and other lease exit costs, other IT costs to retire applications, and other expenses. Total restructuring and other costs are expected to be approximately $130, before tax, and will be recognized in Corporate for segment reporting. The estimated restructuring and other costs for future periods do not include all costs associated with the real estate consolidation plan as those plans are still being finalized.

Restructuring and Other Costs, Before Tax
			Incurred in the Year Ended December 31, 2020			Incurred in the Year Ended December 31, 2021			Cumulative Incurred Through December 31, 2021			Total Amount Expected to be Incurred
Severance benefits			$	73		$	(25)		$	48		$	48
IT costs			2			9			11			21
Professional fees and other expenses			29			17			46			61
Total restructuring and other costs, before tax			$	104		$	1		$	105		$	130

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			Index to Consolidated Financial Statements and Schedules
Table of Contents			Note 23 - Restructuring and Other Costs

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

Accrued Restructuring and Other Costs
			Year Ended December 31, 2021
			Severance Benefits and Related Costs			IT Costs			Professional Fees and Other						Total Restructuring and Other Costs Liability
Balance, beginning of period			$	54		$	—		$	—					$	54
Incurred			(25)			9			17						1
Payments			(11)			(9)			(17)						(37)
Balance, end of period			$	18		$	—		$	—					$	18

Accrued Restructuring and Other Costs
			Year Ended December 31, 2020
			Severance Benefits and Related Costs			IT Costs			Professional Fees and Other						Total Restructuring and Other Costs Liability
Balance, beginning of period			$	—		$	—		$	—					$	—
Incurred			73			2			29						104
Payments			(19)			(2)			(29)						(50)
Balance, end of period			$	54		$	—		$	—					$	54

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Table of Contents			Index to Consolidated Financial Statements and Schedules

Part IV - Schedule I. Summary of Investments - Other Investments in Affiliates

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

SCHEDULE I

SUMMARY OF INVESTMENTS — OTHER THAN INVESTMENTS IN AFFILIATES

(in millions)

			As of December 31, 2021
Type of Investment			Cost			Fair Value			Amount at which shown on Balance Sheet
Fixed Maturities
Bonds and notes
U.S. government and government agencies and authorities (guaranteed and sponsored)			$	5,706		$	5,881		$	5,881
States, municipalities and political subdivisions			7,473			8,257			8,257
Foreign governments			883			910			910
Public utilities			1,917			2,050			2,050
All other corporate bonds			15,827			16,657			16,657
All other mortgage-backed and asset-backed securities			8,982			9,092			9,092
Total fixed maturities, available-for-sale			40,788			42,847			42,847
Equity Securities
Common stocks
Industrial, miscellaneous and all other			1,509			1,509			1,509
Non-redeemable preferred stocks			585			585			585
Total equity securities, at fair value			2,094			2,094			2,094
Mortgage loans [1]			5,412			5,576			5,383
Other investments			370			375			375
Short-term investments			3,697			3,697			3,697
Investments in partnerships and trusts			3,353						3,353
Total investments			$	55,714					$	57,749

[1]Cost of mortgage loans excludes the allowance for credit losses ("ACL") of $29. For further information, refer to Schedule V - Valuation and Qualifying Accounts.

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Table of Contents			Index to Consolidated Financial Statements and Schedules

Part IV - Schedule II. Condensed Financial Information of the Hartford Financial Services Group, Inc.

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

SCHEDULE II

CONDENSED FINANCIAL INFORMATION OF THE HARTFORD FINANCIAL SERVICES GROUP, INC.

(Registrant)

(in millions)

			As of December 31,
Condensed Balance Sheets			2021			2020
Assets
Fixed maturities, available-for-sale, at fair value (amortized cost of $174 and $127)			$	173		$	127
Other investments			12			20
Short-term investments			1,732			1,678
Cash			—			—
Investment in affiliates			22,546			22,986
Deferred income taxes			430			493
Unamortized issue costs			3			2
Other assets			344			66
Total assets			$	25,240		$	25,372
Liabilities and Stockholders’ Equity
Net payable to affiliates			$	1,820		$	1,757
Long-term debt			4,944			4,352
Other liabilities			633			707
Total liabilities			7,397			6,816
Total stockholders’ equity			17,843			18,556
Total liabilities and stockholders’ equity			$	25,240		$	25,372

The condensed financial statements should be read in conjunction with the consolidated financial statements and notes thereto.

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Table of Contents			Index to Consolidated Financial Statements and Schedules

Part IV - Schedule II. Condensed Financial Information of the Hartford Financial Services Group, Inc.

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

SCHEDULE II

CONDENSED FINANCIAL INFORMATION OF THE HARTFORD FINANCIAL SERVICES GROUP, INC. (continued)

(Registrant)

(in millions)

			For the years ended December 31,
Condensed Statements of Operations and Comprehensive Income			2021			2020			2019
Net investment income			$	2		$	9		$	50
Net realized gains (losses)			(1)			(2)			3
Total revenues			1			7			53
Interest expense			234			236			255
Loss on extinguishment of debt			—			—			68
Other expense (income)			(2)			(8)			15
Total expenses			232			228			338
Loss before income taxes and earnings of subsidiaries			(231)			(221)			(285)
Income tax expense (benefit)			(51)			(39)			(60)
Income (loss) before earnings of subsidiaries			(180)			(182)			(225)
Earnings of subsidiaries			2,545			1,919			2,310
Net income			2,365			1,737			2,085
Other comprehensive income (loss) - parent company:
Change in net gain or loss on cash-flow hedging instruments			24			(28)			(24)
Change in net unrealized gain or loss on fixed maturities			(1)			(1)			5
Change in pension and other postretirement plan adjustments			224			(36)			(35)
Other comprehensive income (loss), net of taxes before other comprehensive income of subsidiaries			247			(65)			(54)
Other comprehensive income (loss) of subsidiaries			(1,245)			1,183			1,685
Total other comprehensive income (loss)			(998)			1,118			1,631
Total comprehensive income			$	1,367		$	2,855		$	3,716

The condensed financial statements should be read in conjunction with the consolidated financial statements and notes thereto.

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Table of Contents			Index to Consolidated Financial Statements and Schedules

Part IV - Schedule II. Condensed Financial Information of the Hartford Financial Services Group, Inc.

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

SCHEDULE II

CONDENSED FINANCIAL INFORMATION OF THE HARTFORD FINANCIAL SERVICES GROUP, INC. (continued)

(Registrant)

(in millions)

			For the years ended December 31,
Condensed Statements of Cash Flows			2021			2020			2019
Operating Activities
Net income			$	2,365		$	1,737		$	2,085
Loss on extinguishment of debt			—			—			68
Dividends received from subsidiaries			1,277			995			18
Equity in net income of subsidiaries			(2,545)			(1,919)			(2,310)
Net realized losses (gains)			1			2			3
Change in operating assets and liabilities			36			504			640
Cash provided by operating activities			1,134			1,319			504
Investing Activities
Net proceeds from (payments for) short-term investments			(54)			(802)			1,731
Proceeds from the sale/maturity/prepayment of:
Fixed maturities, available-for-sale			25			311			478
Equity securities, at fair value			—			124			—
Payments for the purchase of:
Fixed maturities, available-for-sale			(74)			(128)			—
Net payments for derivatives			38			(57)			(33)
Amount paid for business acquired			—			—			(2,098)
Capital returned from (contributions to) subsidiaries			530			386			(20)
Cash provided by (used for) investing activities			465			(166)			58
Financing Activities
Proceeds from issuance of debt			588			—			1,376
Repayments of debt			—			(500)			(1,278)
Treasury stock acquired			(1,702)			(150)			(200)
Net issuance (return of) shares under incentive and stock compensation plans			25			(21)			(6)
Dividends paid on common shares			(489)			(461)			(436)
Dividends paid on preferred shares			(21)			(21)			(21)
Cash used for financing activities			(1,599)			(1,153)			(565)
Net increase (decrease) in cash			—			—			(3)
Cash — beginning of period			—			—			3
Cash — end of period			$	—		$	—		$	—
Supplemental Disclosure of Cash Flow Information
Interest Paid			$	214		$	232		$	255

The condensed financial statements should be read in conjunction with the consolidated financial statements and notes thereto.

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Table of Contents			Index to Consolidated Financial Statements and Schedules

Part IV - Schedule III. Supplementary Insurance Information

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

SCHEDULE III

SUPPLEMENTARY INSURANCE INFORMATION

(in millions)

Segment			Deferred Policy Acquisition Costs			Unpaid Losses and Loss Adjustment Expenses			Reserve for Future Policy Benefits			Unearned Premiums			Other Policyholder Funds and Benefits Payable
As of December 31, 2021
Commercial Lines			$	742		$	26,906		$	—		$	5,693		$	—
Personal Lines			101			1,844			—			1,459			—
Property & Casualty Other Operations			—			2,699			—			2			—
Group Benefits			31			8,210			399			40			426
Hartford Funds			7			—			—			—			—
Corporate			—			—			197			—			261
Consolidated			$	881		$	39,659		$	596		$	7,194		$	687
As of December 31, 2020
Commercial Lines			$	641		$	25,058		$	—		$	5,081		$	—
Personal Lines			103			1,836			—			1,506			—
Property & Casualty Other Operations			—			2,728			—			2			—
Group Benefits			38			8,233			420			40			415
Hartford Funds			7			—			—			—			—
Corporate			—			—			218			—			286
Consolidated			$	789		$	37,855		$	638		$	6,629		$	701

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Table of Contents			Index to Consolidated Financial Statements and Schedules

Part IV - Schedule III. Supplementary Insurance Information

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

SCHEDULE III

SUPPLEMENTARY INSURANCE INFORMATION

(in millions)

Segment			Earned Premiums, Fee Income and Other			Net Investment Income			Benefits, Losses and Loss Adjustment Expenses			Amortization of Deferred Policy Acquisition Costs			Insurance Operating Costs and Other Expenses [1]			Net Written Premiums [2]
For the year December 31, 2021
Commercial Lines			$	9,586		$	1,502		$	6,044		$	1,398		$	1,747		$	10,041
Personal Lines			3,066			157			1,864			230			678			2,908
Property & Casualty Other Operations			—			75			202			—			9			—
Group Benefits			5,687			550			4,612			40			1,413			—
Hartford Funds			1,189			5			—			12			913			—
Corporate			40			24			7			—			325			—
Consolidated			$	19,568		$	2,313		$	12,729		$	1,680		$	5,085		$	12,949
For the year December 31, 2020
Commercial Lines			$	8,941		$	1,160		$	5,929		$	1,397		$	1,683		$	8,969
Personal Lines			3,123			157			1,466			244			663			2,936
Property & Casualty Other Operations			—			55			258			—			10			—
Group Benefits			5,536			448			4,137			50			1,348			—
Hartford Funds			989			4			—			14			773			—
Corporate			102			22			15			1			415			9
Consolidated			$	18,691		$	1,846		$	11,805		$	1,706		$	4,892		$	11,914
For the year December 31, 2019
Commercial Lines			$	8,326		$	1,129		$	5,192		$	1,296		$	1,776		$	8,452
Personal Lines			3,318			179			2,185			259			702			3,131
Property & Casualty Other Operations			2			84			21			—			12			—
Group Benefits			5,603			486			4,055			54			1,352			—
Hartford Funds			999			7			—			12			813			—
Corporate			146			66			19			1			431			12
Consolidated			$	18,394		$	1,951		$	11,472		$	1,622		$	5,086		$	11,595

[1]Includes interest expense, loss on extinguishment of debt, restructuring and other costs, loss on reinsurance transaction and amortization of intangible assets.

[2]Excludes life insurance pursuant to Regulation S-X.

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Table of Contents			Index to Consolidated Financial Statements and Schedules

Part IV - Schedule IV. Reinsurance

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

SCHEDULE IV

REINSURANCE

(in millions)

			Gross Amount			Ceded Amount			Assumed From Other Companies			Net Amount			Percentage of Amount Assumed to Net
For the year ended December 31, 2021
Life insurance in-force			$	1,112,333		$	22,814		$	21,230		$	1,110,749		2		%
Insurance revenues
Property and casualty insurance			$	13,204		$	1,277		$	568		$	12,495		5		%
Life insurance and annuities			2,367			25			46			2,388			2		%
Accident and health insurance			3,296			79			82			3,299			2		%
Total insurance revenues			$	18,867		$	1,381		$	696		$	18,182		4		%
For the year ended December 31, 2020
Life insurance in-force			$	1,134,390		$	19,055		$	20,373		$	1,135,708		2		%
Insurance revenues
Property and casualty insurance			$	12,551		$	1,173		$	540		$	11,918		5		%
Life insurance and annuities			2,251			24			207			2,434			9		%
Accident and health insurance			2,994			72			180			3,102			6		%
Total insurance revenues			$	17,796		$	1,269		$	927		$	17,454		5		%
For the year ended December 31, 2019
Life insurance in-force			$	879,496		$	18,483		$	254,739		$	1,115,752		23		%
Insurance revenues
Property and casualty insurance			$	12,010		$	936		$	416		$	11,490		4		%
Life insurance and annuities			1,739			25			807			2,521			32		%
Accident and health insurance			2,383			66			765			3,082			25		%
Total insurance revenues			$	16,132		$	1,027		$	1,988		$	17,093		12		%

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Table of Contents			Index to Consolidated Financial Statements and Schedules

Part IV - Schedule V. Valuation and Qualifying Accounts

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

SCHEDULE V

VALUATION AND QUALIFYING ACCOUNTS

(in millions)

			Balance January 1, [1]			Increase (decrease) in Costs and Expenses						Write-offs/ Payments/ Other			Balance December 31,
2021
Allowance for credit losses ("ACL") on fixed maturities, available-for-sale			$	23		$	(4)					$	(18)		$	1
ACL on mortgage loans			$	38		$	(9)					$	—		$	29
ACL on premiums receivable and agents' balances			$	152		$	4					$	(51)		$	105
Allowance for uncollectible reinsurance			$	108		$	3					$	(12)		$	99
Valuation allowance for deferred taxes			$	4		$	9					$	(6)		$	7
2020
ACL on fixed maturities, available-for-sale						$	30					$	(7)		$	23
ACL on mortgage loans			$	19		$	19					$	—		$	38
ACL on premiums receivable and agents' balances			$	122		$	74					$	(44)		$	152
Allowance for uncollectible reinsurance			$	116		$	4					$	(12)		$	108
Valuation allowance for deferred taxes			$	4		$	9					$	(9)		$	4
2019
ACL on mortgage loans			$	1		$	(1)					$	—		$	—
ACL on premiums receivable and agents' balances			$	135		$	42					$	(32)		$	145
Allowance for uncollectible reinsurance			$	126		$	2					$	(14)		$	114
Valuation allowance for deferred taxes			$	—		$	—					$	4		$	4

[1]The balance as of January 1, 2020 reflects a cumulative effect adjustments recorded to retained earnings of $19, $(23), and $2, for the ACL on mortgage loans, ACL on premiums receivable and agents' balances, and the allowance for uncollectible reinsurance, respectively. For more information see Note 1 - Basis of Presentation and Significant Accounting Policies.

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THE HARTFORD FINANCIAL SERVICES GROUP, INC.

FOR THE FISCAL YEAR ENDED DECEMBER 31, 2021

FORM 10-K

EXHIBITS INDEX

The exhibits attached to this Form 10-K are those that are required by Item 601 of Regulation S-K.

						Incorporated by Reference
Exhibit No.			Description			Form			File No.			Exhibit No.			Filing Date
2.01			Purchase and Sale Agreement by and among Massachusetts Mutual Life Insurance Company, Hartford Life, Inc. and The Hartford Financial Services Group, Inc. ("The Hartford") dated as of September 4, 2012.			10-Q			001-13958			2.01			11/01/2012
2.02			Purchase and Sale Agreement by and among Hartford Life, Inc., Prudential Financial, Inc. and The Hartford dated as of September 27, 2012.			10-Q			001-13958			2.02			11/01/2012
2.03			Stock and Asset Purchase Agreement dated December 3, 2017 by and between The Hartford Financial Services Group, Inc., Hartford Holdings, Inc. Hopmeadow Acquisition, Inc. Hopmeadow Holdings, LP and Hopmeadow Holdings GP LLC.			8-K			001-13958			2.01			12/04/2017
2.04			Master Transaction Agreement by and between Hartford Life & Accident Insurance Company, a subsidiary of The Hartford Financial Services Group, Inc., and Aetna Inc. dated as of October 22, 2017.			8-K			001-13958			2.01			10/23/2017
2.05			Commitment Agreement by and between The Hartford Financial Services Group, Inc., The Prudential Insurance Company of America and State Street Global Advisors Trust Company, as the Independent Fiduciary of The Hartford Retirement Plan for U.S. Employees, dated as of June 23, 2017.†			10-Q			001-13958			2.01			07/27/2017
2.06			Agreement and Plan of Merger, dated as of August 22, 2018, by and among The Navigators Group, Inc., The Hartford Financial Services Group, Inc. and Renato Acquisition Co.			8-K/A			001-13958			2.1			08/22/2018
3.01			Restated Certificate of Incorporation of The Hartford, as filed with the Delaware Secretary of State on October 20, 2014.			8-K			001-13958			3.01			10/20/2014
3.02			Certificate of Designations with respect to the Series G Preferred Stock of the Company, dated October 30, 2018.			8-K			001-13958			3.1			11/05/2018
3.03			Amended and Restated By-Laws of The Hartford, amended effective December 17, 2020.			8-K			001-13958			3.1			12/17/2020
4.01			Senior Indenture, dated as of March 9, 2004, between The Hartford and JPMorgan Chase Bank, as Trustee.			8-K			001-13958			4.1			03/12/2004
4.02			Junior Subordinated Indenture, dated as of February 12, 2007, between The Hartford Financial Services Group, Inc., and Wilmington Trust Company (as successor to LaSalle Bank, National Association), as Trustee.			8-K			001-13958			4.01			02/16/2007
4.03			Senior Indenture, dated as of April 11, 2007, between The Hartford and The Bank of New York Trust Company, N.A., as Trustee.			S-3ASR			333-142044			4.03			04/11/2007
4.04			Junior Subordinated Indenture, dated as of June 6, 2008, between The Hartford and The Bank of New York Trust Company, N.A., as Trustee.			8-K			001-13958			4.1			06/06/2008
4.05			First Supplemental Indenture, dated as of June 6, 2008, between The Hartford and The Bank of New York Trust Company, N.A., as Trustee.			8-K			001-13958			4.2			06/06/2008
4.06			Third Supplemental Indenture, dated as of April 5, 2012, between The Hartford and The Bank of New York Mellon Trust Company, N.A., as Trustee.			8-K/A			001-13958			4.3			04/06/2012
4.07			First Supplemental Indenture, dated as of August 9, 2013, between The Hartford and The Bank of New York Mellon Trust Company, N.A., as Trustee.			S-3ASR			333-190506			4.07			08/09/2013
4.08			Replacement Capital Covenant dated as of February 15, 2017.			8-K			001-13958			4.01			02/15/2017
4.09			Form of Series G Preferred Stock Certificate (included as Exhibit A to Exhibit 3.1 to the Company’s Current Report on Form 8-K filed on November 5, 2018).			8-K			001-13958			3.1			11/05/2018

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						Incorporated by Reference
Exhibit No.			Description			Form			File No.			Exhibit No.			Filing Date
4.10			Deposit Agreement, dated November 6, 2018, among the Company, Computershare Inc. and Computershare Trust Company, N.A., collectively as depositary, and the holders from time to time of the depositary receipts described therein.			8-K			001-13958			4.2			11/06/2018
4.11			Form of Depositary Receipt (included as Exhibit A to Exhibit 4.2 to the Company’s Current Report on Form 8-K filed on November 6, 2018)			8-K			001-13958			4.3			11/06/2018
4.12			Second Supplemental Indenture, dated as of August 19, 2019, between The Hartford Financial Services Group, Inc. and The Bank of New York Mellon Trust Company, N.A., as Trustee			8-K			001-13958			4.3			08/19/2019
4.13			Third Supplemental Indenture, dated as of September 21, 2021, between The Hartford Financial Services Group, Inc. and The Bank of New York Mellon Trust Company, N.A., as Trustee.			8-K			001-13958			4.4			09/21/2021
4.14			Description of Securities**
10.01			Aggregate Excess of Loss Reinsurance Agreement by and between Hartford Fire Insurance Company, First State Insurance Company, New England Insurance Company, New England Reinsurance Corporation, Hartford Accident and Indemnity Company, Hartford Casualty Insurance Company, Hartford Fire Insurance Company, Hartford Insurance Company of Illinois, Hartford Insurance Company of the Midwest, Hartford Insurance Company of the Southeast, Hartford Lloyd’s Insurance Company, Hartford Underwriters Insurance Company, Nutmeg Insurance Company, Pacific Insurance Company, Limited, Property and Casualty Insurance Company of Hartford, Sentinel Insurance Company, Ltd., Trumbull Insurance Company, Twin City Fire Insurance Company (collectively, the "Reinsured") and National Indemnity Company (the "Reinsurer") dated as of December 30, 2016.** ††
10.02			Amended and Restated Credit Agreement dated October 27, 2021, among The Hartford Financial Services Group, Inc. as borrower, Bank of America, N.A., as administrative agent and the other parties signatory thereto.			8-K			001-13958			10.1			10/28/2021
*10.03			The Hartford Deferred Restricted Stock Unit Plan, as amended.			10-K			001-13958			10.12			02/24/2006
*10.04			Form of Key Executive Employment Protection Agreement between The Hartford and certain executive officers of The Hartford, as amended.			10-K			001-13958			10.06			02/12/2009
*10.05			The Hartford 2010 Incentive Stock Plan Forms of Individual Award Agreements.			10-Q			001-13958			10.04			08/04/2010
*10.06			The Hartford 2010 Incentive Stock Plan Administrative Rules Related to Awards for Key Employees, as amended effective December 15, 2010.			10-K			001-13958			10.10			02/25/2011
*10.07			The Hartford Deferred Compensation Plan, as amended December 20, 2012.			10-K			001-13958			10.18			03/01/2013
*10.08			The Hartford Excess Pension Plan II, as amended January 1, 2013.			10-K			001-13958			10.19			03/01/2013
*10.09			The Hartford Excess Savings Plan IA, as amended effective May 28, 2013.			8-K			001-13958			10.01			07/29/2013
*10.10			The Hartford 2010 Incentive Stock Plan, as amended and restated, effective February 25, 2014.			10-K			001-13958			10.05			02/28/2014
*10.11			The Hartford 2014 Incentive Stock Plan, effective May 21, 2014.			S-8			333-197671			4.03			07/28/2014
*10.12			The Hartford Protection Agreement between The Hartford and Christopher Swift, effective June 9, 2014.			10-Q			001-13958			10.03			07/30/2014
*10.13			The Hartford 2014 Incentive Stock Plan Administrative Rules Relating to Awards for Non-Employee Directors.			10-K			001-13958			10.06			02/27/2015
*10.14			The Hartford 2014 Incentive Stock Plan Form of Non-Employee Directors Award Agreement.			10-Q			001-13958			10.01			07/27/2015
*10.15			The Hartford 2014 Incentive Stock Plan Forms of Individual Award Agreements			10-Q			001-13958			10.02			04/26/2018
*10.16			The Hartford Financial Services Group, Inc. Annual Incentive Plan			8-K			001-13958			10.01			02/21/2019
*10.17			Amendment to The Hartford Excess Savings Plan IA			10-Q			001-13958			10.01			11/04/2019
*10.18			The Hartford 2020 Stock Incentive Plan, effective May 20, 2020			S-8			001-13958			4.03			07/31/2020
*10.19			The Hartford 2020 Stock Incentive Plan Forms of Individual Award Agreements.			10-K			001-13958			10.24			02/19/2021
*10.20			The Hartford 2020 Stock Incentive Plan Administrative Rules Relating to Awards for Non-Employee Directors.			10-K			001-13958			10.25			02/19/2021

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						Incorporated by Reference
Exhibit No.			Description			Form			File No.			Exhibit No.			Filing Date
*10.21			The Hartford 2020 Stock Incentive Plan Form of Non-Employee Directors Award Agreement.			10-K			001-13958			10.26			02/19/2021
*10.22			Amendment to The Hartford Excess Pension Plan II. **
*10.23			The Hartford Senior Executive Officer Severance Pay Plan, as amended and restated, effective January 1, 2022. **
*10.24			The Hartford Senior Executive Severance Pay Plan, as amended and restated, effective January 1, 2022. **
21.01			Subsidiaries of The Hartford Financial Services Group, Inc. **
23.01			Consent of Deloitte & Touche LLP to the incorporation by reference into The Hartford’s Registration Statements on Form S-8 and Form S-3 of the report of Deloitte & Touche LLP contained in this Form 10-K regarding the audited financial statements is filed herewith.**
24.01			Power of Attorney. **
31.01			Certification of Christopher J. Swift pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. **
31.02			Certification of Beth A. Costello pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. **
32.01			Certification of Christopher J. Swift pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. **
32.02			Certification of Beth A. Costello pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. **
101.INS			Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.
101.SCH			Inline XBRL Taxonomy Extension Schema.
101.CAL			Inline XBRL Taxonomy Extension Calculation Linkbase.
101.DEF			Inline XBRL Taxonomy Extension Definition Linkbase.**
101.LAB			Inline XBRL Taxonomy Extension Label Linkbase.**
101.PRE			Inline XBRL Taxonomy Extension Presentation Linkbase.**
104.01			Cover Page Interactive Data File - formatted in Inline XBRL and included as Exhibit 101

*						Management contract, compensatory plan or arrangement.
**						Filed with the Securities and Exchange Commission as an exhibit to this report.
†						Certain portions of this exhibit have been omitted pursuant to the Securities and Exchange Commission Order Granting Confidential Treatment Under the Securities Exchange Act of 1934, dated August 7, 2017
††						Certain portions of this exhibit have been omitted pursuant to Section (b)(10)(iv) of Item 601 of Regulation S-K. The registrant agrees to furnish a copy of this exhibit to the Securities and Exchange Commission upon request.

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SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

			THE HARTFORD FINANCIAL SERVICES GROUP, INC.
			By:			/s/ Scott R. Lewis
						Scott R. Lewis
						Senior Vice President and Controller
						(Chief accounting officer and duly authorized signatory)

Date: February 18, 2022

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Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

						Signature						Title						Date
						/s/ Christopher J. Swift						Chairman, Chief Executive Officer and Director						February 18, 2022
						Christopher J. Swift						(Principal Executive Officer)
						/s/ Beth A. Costello						Executive Vice President and Chief Financial Officer						February 18, 2022
						Beth A. Costello						(Principal Financial Officer)
						/s/ Scott R. Lewis						Senior Vice President and Controller						February 18, 2022
						Scott R. Lewis						(Principal Accounting Officer)
						*						Director						February 18, 2022
						Robert B. Allardice III
						*						Director						February 18, 2022
						Larry D. De Shon
						*						Director						February 18, 2022
						Carlos Dominguez
						*						Director						February 18, 2022
						Trevor Fetter
						*						Director						February 18, 2022
						Kathryn A. Mikells
						*						Director						February 18, 2022
						Michael G. Morris
						*						Director						February 18, 2022
						Teresa W. Roseborough
						*						Director						February 18, 2022
						Virginia P. Ruesterholz
						*						Director						February 18, 2022
						Matthew E. Winter
						*						Director						February 18, 2022
						Greig Woodring
*By:						/s/ David C. Robinson
						David C. Robinson
						As Attorney-in-Fact